Answer:
$3732
Step-by-step explanation:
Rate 1: 6
4
3
%=6+3/4=
\,\,6.75\%\rightarrow 0.0675
6.75%→0.0675
\text{Rate 2: }6\tfrac{1}{4}\%=6+1/4=
Rate 2: 6
4
1
%=6+1/4=
\,\,6.25\%\rightarrow 0.0625
6.25%→0.0625
\text{Calculate Final Amount for Eli}
Calculate Final Amount for Eli
\overline{\phantom{\text{Calculate Final Amount for Eli}}}
Calculate Final Amount for Eli
\text{Compounded Quarterly:}
Compounded Quarterly:
A=P\left(1+\frac{r}{n}\right)^{nt}
A=P(1+
n
r
)
nt
Compound interest formula
P=37000\hspace{35px}r=0.0675\hspace{35px}t=9\hspace{35px}n=4
P=37000r=0.0675t=9n=4
Given values
A=37000\left(1+\frac{0.0675}{4}\right)^{4(9)}
A=37000(1+
4
0.0675
)
4(9)
Plug in values
A=37000(1.016875)^{36}
A=37000(1.016875)
36
Simplify
A=67582.5002
A=67582.5002
Use calculator
\text{Calculate Final Amount for Xavier}
Calculate Final Amount for Xavier
\overline{\phantom{\text{Calculate Final Amount for Xavier}}}
Calculate Final Amount for Xavier
\text{Compounded Annually:}
Compounded Annually:
A=P(1+r)^t
A=P(1+r)
t
P=37000\hspace{35px}r=0.0625\hspace{35px}t=9
P=37000r=0.0625t=9
Given values
A=37000(1+0.0625)^{9}
A=37000(1+0.0625)
9
Plug in values
A=37000(1.0625)^{9}
A=37000(1.0625)
9
Add
A=63850.1869
A=63850.1869
Use calculator
\text{How much more money Eli has:}
How much more money Eli has:
67582.5002-63850.1869
67582.5002−63850.1869
3732.3133
3732
