Answer:
Amber has a total of $1225.54 after 10 years. Jin has a total of $1225.35 after 10 years. So, Amber earns $0.19 more
Step-by-step explanation:
A: Amber
First, convert 8 percent to r as a decimal
r = R/100
r = 8/100
r = 0.08 rate per year
P = Principal
e = 2.71828(mathematical constant)
t = time
Then solve the equation for A
A = P*e^(r*t)
A = 1,000.00(2.71828)^(0.08)(10)
A = $2,225.54
The total amount accrued, principal plus interest, with compound interest on a principal of $1,000.00 at a rate of 8% per year compounded continuously over 10 years for Amber is $2,225.54.
J: Jin
First, convert 8 as a percent to r as a decimal
r = R/100
r = 8/100
r = 0.08 rate per year
n = 365 days
Then solve the equation for A
A = P(1 + r/n)^n*t
A = 1,000.00(1 + 0.08/365)(365)(10)
A = 1,000.00(1 + 0.000219178)(3650)
A = $2,225.35
Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $1,000.00 at a rate of 8% per year compounded 365 times per year over 10 years for Jin is $2,225.35.
$2,225.54-1000=A($1225.54)
$2,225.35-1000=J($1225.35)
