Question

Brandon invested $41,000 in an account paying an interest rate of 3% compounded
continuously. Evan invested $41,000 in an account paying an interest rate of 37%
compounded quarterly. To the nearest dollar, how much money would Brandon have
in his account when Evan's money has doubled in value?

Answer 1

After 1.959 years Evan's money has doubled in value and at that time Brandon have $43,481.78 in his account.

What is compound interest?

It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.

We can calculate the compound interest using the below formula:

$\rm A = P(1+\dfrac{r}{n})^{nt}$

Where A = Final amount

          P = Principal amount

          r  = annual rate of interest

          n = how many times interest is compounded per year

          t = How long the money is deposited or borrowed (in years)

Let's suppose, after t time, Evan's money has doubled in value.

$\rm 2P = P(1+\dfrac{0.37}{4})^{4t}$

After solving

x = 1.959 years

Use x = 1.959 years to get how much money would Brandon have.

$\rm A = P e^{rt}$

$\rm A = 41000\times e^{0.03\times 1.959}$

A = $43,481.78

Thus, after 1.959 years Evan's money has doubled in value and at that time Brandon have $43,481.78 in his account.

Learn more about the compound interest here:

brainly.com/question/26457073

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