Question

Madeline invested $51,000 in an account paying an interest rate of 6\tfrac{1}{8}6

8

1

​

% compounded daily. Harper invested $51,000 in an account paying an interest rate of 5\tfrac{3}{4}5

4

3

​

% compounded monthly. After 13 years, how much more money would Madeline have in her account than Harper, to the nearest dollar?

Answer 1

The amount Madeline would have more than Harper is $4,867.18.

What is the future value of the accounts of Madeline and Harper?

The formula for calculating future value is: FV = P (1 + r/m)^nm

Where:

FV = Future value

P = Present value

R = interest rate

m = number of compounding

N = number of years

Madeline = $51,000 x [ 1 + (0.06125 ÷ 365)]^(365 x 13) = $113,070.20 Harper = $51,000 x [ 1 + (0.058 ÷ 12)]^(12 x 13) = $108,203.24

Difference in amount = $113,070.20 - $108,203.24 = $4,867.18

To learn more about future value, please check: https://brainly.com/question/18760477