Question

Madeline invested $51,000 in an account paying interest rate of 6 1/8% compounded daily. Harper invested 51000 in an account paying an interest rate of 5 3/4% compounded monthly. After 13 years, how much more money would Madeline have in her account than Harper

Answer 1

Answer:$5565 just took it

Explanation:

Answer 2

$5564.87

Explanation:

We are to determine the difference between the future values of each investment

The formula for calculating future value:

FV = P (1 + r)^mn

FV = Future value

P = Present value

R = interest rate

N = number of years

m = number of compounding

Madeline

P = Present value = 51,000

R = interest rate = 0.06125 / 365 = 0.000168

N = number of years = 13

m = number of compounding = 365

51,000 x (1.000168)^4745 = 113,070.20

Harper

51,000 x (1.004792)^156 = 107,505.33

Difference = 113,070.20 - 107,505.33 = $5,564.87