Question

14. Shannon and Lauren each invest $2000 at 4.5% annual interest for Byears. Shannon's account compounds interest monthly while Lauren's account compounds interest continuously. Who will have more money in their account after 8years? How much more? (5pts)

Answer 1

기 formule Used :- Я nt ellt Compound Interest final amount P Principal ry rate of Interest h no. of times interest is applied t> Home rt A = pe ₃. Continuous Compound Interest A Amount P→ Principal er rate of interest ty time

Here, p = $2000 0.045 r = 4.5%. ta 8 n = 12 A For Shannon 12 X 8 2000 l tonous L2 96 2000 cl.00375) 2000 x 1.4324 2 2860 28 64.73 $2864.73 so Shannon will have $2880 after 8 years. for Lauren - 0.0458 A = 2000 2000 x 1.43332 2866.66 so, Lauren will have $2866.66 after 8 years. mare Now, It is clear that law will have money Lauren will has $ 1.93 more than Shannon.

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