Answer:
Brian has $776 more account in his account than Chris.
Step-by-step explanation:
Compound interest Formula:
[tex]A=P(1+r)^t[/tex]
[tex]I[/tex]= A-P
A= Amount after t years
P= Initial amount
r= Rate of interest
t= Time in year
Given that,
Brian invests $10,000 in an account earning 4% interest, compounded annually for 10 years.
Here P = $10,000 , r= 4%=0.04, t=10 years
The amount in his account after 10 years is
[tex]A=10000(1+0.04)^{10}[/tex]
=$14802.44
≈$14802
Five years after Brian's investment,Chris invests $10,000 in an account earning 7% interest, compounded annually for 5 years.
Here P = $10,000 , r= 7%=0.07, t=5 years
The amount in his account after 5 years is
[tex]A=10000(1+0.07)^{5}[/tex]
=$14025.51
≈$14026
From the it is cleared that Brian has $(14802-14026)=$776 more account in his account than Chris.
Answer:
B) Brian has $766 more in his account than Chris
Step-by-step explanation:
Compound interest formula is [tex]A = P(1+r)^{2}[/tex]
P - principal amount
r - rate of interest
t - number of years
Brian invests $10,000 in an account earning 4% interest, compounded annually for 10 years
P = 10,000
r= 4% = 0.04
t = 10
Plug in all the factors
[tex]Brian = 10000(1+0.04)^{10}= $14,802[/tex]
Chris invests $10,000 in an account earning 7% interest, compounded annually for 5 years.
P = 10,000
r= 7% = 0.07
t =5
Plug in all the factors
[tex]Chris = 10000(1+.07)^{5 } = $14,026[/tex]
$14,802 - 14,026 = $776
