Question

Sebastian invested $7,100 in an account paying an interest rate of 8 1 4 \% compounded monthly. Eva invested $7,100 in an account paying an interest rate of 8 1 2 \% compounded continuously After 5 years, how much more money would Eva have in her account than Sebastian, to the nearest dollar?

Answer 1

Answer:

Given:

Sebastian :

Principal(invested)= $7,100

Rate of interest=  8.14% compounded monthly

Eva:

Principal(invested)= $7,100

Rate of interest= 8.12% compounded continuously

Step-by-step explanation:

After 5 years,

In Sebastian case:

Amount= Principal*$(1+R/100)^{t}$

Amount = 7100*$(1+8.14/100)^{12*5}$

Amount= 7100*$1.0814^{60}$

Amount=7100*109.4415

Amount= $777,034.43

In Eva case,

Amount= Principal*$e^{Rt/100}$

Amount = 7100*$e^{0.0812*12*5\\}$

Amount= 7100*130.5818

Amount= $927,130.92

Difference between their money=$927,130.92-777034.43

                                                 =$150,096.49

Eva has $150,096 more money than Sebastian.

Answer 2

Answer:

80

Step-by-step explanation: