contestada

Calvin deposits $400 in a savings account that accrues 5% interest compounded monthly. after c years, calvin has $658.80. makayla deposits $300 in a different savings account that accrues 6% interest compounded quarterly. after m years, makayla has $613.04. what is the approximate difference in the number of years that calvin and makayla have their money invested?

Respuesta :

jayilych4real

The approximate difference in years for Calvin and Makayla is that B. Makayla invests her money 2 years longer.

Calculations and Parameters:

Given:

  • Interest rate= 5%
  • Deposit of Calvin= $400
  • Final amount after c years= $658.80

We use the compound interest formula,

[tex]A= P(1 + r/t)^t[/tex]

[tex]658.8/400= (1205/1200)^1^2^c[/tex]

c= 10 years approx.

For Makayla,

  • Amount deposited= $300
  • Interest rate= 6%
  • Final amount= $613.4
  • m= ?

We use the same formula:

[tex]A= P(1 + r/t)^t\\[/tex]

[tex]613.4/300= (1206/1200)^1^2^m[/tex]

m= 12 years approx.

Hence, the difference in the years would be:

12-10

= 2 years.

Read more about compound interest here:

https://brainly.com/question/26646518

#SPJ4

Otras preguntas