Answer:
$317
Step-by-step explanation:
Formula for compound interest is;
A = P(1 + (r/n))^(nt)
For melanie;
P = $3800
r = 2⅜% = 0.02375
n = 12/4 = 3
t = 16 years
Thus;
A = 3800(1 + (0.02375/3))^(3 × 16))
A ≈ $5548
For Sébastien;
P = $3800
r = 2¾% = 0.0275
n = 12
t = 16
Thus;
A = 3800(1 + (0.0275/12))^(12 × 16))
A ≈ 5865
Difference between Sébastien and Melanie's final amount = $5865 - $5548 = $317
