Answer:
Therefore Miguel will earn $186 more that Marisa
Step-by-step explanation:
To solve for how much more interest Miguel earn than Marisa, we need to solve for their various investments individually and compare both results.
Given data
Principal p = $3,000
Final amount A = ?
Rate r= 4.5%
Time t = 8 years
Firstly applying the simple interest option for Marisa we have.
[tex]A= P (1+rt)[/tex]
[tex]A= 3000(1+0.045*8)\\A= 3000(1 + 0.36)\\A= 3000(1.36)\\A= $4,080[/tex]
Secondly let us solve the compounded interest for Miguel
[tex]A= P(1+r)^{t} \\A= 3000(1+ 0.045)^{8} \\A= 3000(1.045)^8} \\A= 3000(1.422)\\A= 4,266\\[/tex]
Hence [tex]4266- 4080=186[/tex]
Therefore Miguel will earn $186 more that Marisa
