Avery invested $2,100 in an account paying an interest rate of 7 7/8% compounded continuously. morgan invested $2,100 in an account paying an interest rate of 8 1/4 % compounded annually. after 12 years, how much more money would morgan have in her account than avery, to the nearest dollar?

Step-by-step explanation:

step 1

Avery

we know that

The formula to calculate continuously compounded interest is equal to

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

we have  

substitute in the formula above  

step 2

Morgan

we know that    

The compound interest formula is equal to  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

substitute in the formula above  

step 3

Find the difference

To the nearest dollar

step-by-step explanation: