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Lincoln invested $2,800 in an account paying an interest rate of 5\tfrac{3}{8}5
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% compounded continuously. Lily invested $2,800 in an account paying an interest rate of 5\tfrac{7}{8}5
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% compounded quarterly. After 15 years, how much more money would Lily have in her account than Lincoln, to the nearest dollar?

Respuesta :

Answer: 445

Step-by-step explanation:

Lincoln’s Final Amount:

Compounded Continuously: A=Pe^rt

P= 2800

r= 0.05375

t=15

A=2800e^0.05375(15)

A=2800e^0.80625

A=6270.5833

Lily’s final amount:

Compounded quarterly:

A=P(1+r/n)^nt

P=2800

r=0.05875

t=15

n=4

A=2800(1+ 0.05875/4)^4(15)

A=2800(1.0146875)^60

A=6715.7829

How much more money does Lily have?

6715.7829-6270.5835

=445.1994

The money would Lily have in her account than Lincoln, to the nearest dollar 445.

We have to determine the compound interest Lincoln’s final amount

Compounded Continuously

A=Pe^rt

P= 2800

r=0.05375

t=15

A=2800e^0.05375(15)

A=2800e^0.80625A=6270.5833

What is the formula for compound interest?

A=P(1+r/n)^nt

P=2800

r=0.05875

t=15

n=4

A=2800(1+ 0.05875/4)^4(15)

A=2800(1.0146875)^60

A=6715.7829

=6715.7829-6270.5835

=445.1994

Therefore money would Lily have in her account than Lincoln, to the nearest dollar 445.

To learn more about the interest visit:

https://brainly.com/question/2151013#SPJ2

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