Answer: $ 55
Step-by-step explanation:
When interest is compounded continuously, the final amount will be
[tex]A=Pe^{rt}[/tex]
When interest is compounded daily, the final amount will be
[tex]A=P(1+\dfrac{r}{365})^{365t}[/tex]
, where P= Principal , r = rate of interest , t = time
For Hunter , P= $750, r = [tex]6\dfrac{5}{8}\%=\dfrac{53}{8}\%=\dfrac{53}{800}=0.06625[/tex]
t = 18 years
[tex]A=750e^{0.06625(18)}=\$2471.48[/tex]
For London , P= $750, r = [tex]6\dfrac{1}{2}\%=\dfrac{13}{2}\%=\neq \dfrac{13}{200}=0.065[/tex]
t = 18 years
[tex]A=750(1+\dfrac{0.065}{365})^{18(365)}=\$2416.24[/tex]
Difference = $ 2471.48 - $ 2416.24 =$ 55.24≈$ 55
Hence, Hunter would have $ 55 more than London in his account .
