Answer: John would have $1371.33 more in his account than Jack.
Step-by-step explanation:
Formula to calculate amount after t years if compounded continuously:
[tex]A=Pe^{rt}[/tex]
Formula to calculate amount after t years if compounded quarterly:
[tex]A=P(1+\dfrac{r}{4})^{4t}[/tex]
, where P= Principal amount, r= rate of interest.
Given: P= $7,600
t=19 years
For Jack, [tex]r=6\dfrac{1}{4}\%=\dfrac{25}{4}\%=\dfrac{25}{400}=0.0625[/tex]
For John, [tex]r=6\dfrac{3}{4}\%=\dfrac{27}{4}\%=\dfrac{27}{400}=0.0675[/tex]
Amount in Jack's account after 19 years= [tex]7600e^{0.0625(19)}[/tex]
[tex]=7600e^{1.1875}\\\\=7600(3.27887376794)\\\\\approx\$24,919.44[/tex]
Amount in John's account after 19 years= [tex]7600e^{0.0675(19)}[/tex]
[tex]=7600(1+0.0675)^{19}\\\\=7600(3.45931245291)\\\\\approx\$26,290.77[/tex]
Difference = 26290.77-24919.44 = $ 1,371.33
John would have $1371.33 more in his account than Jack.
