Christa wants to invest $50,000 in a retirement fund. One investment offers 8% compounded quarterly. Another offers 7.75% compounded continuously. How much more interest will she get after the first year from the first investment that is compounded quarterly? Round answer to the nearest cent. Do not include any commas or the dollar sign in your response.

Christa wants to invest $50,000 in a retirement fund. One investment offers 8% compounded quarterly. Another offers 7.75% compounded continuously. How much more interest will she get after the first year from the first investment that is compounded quarterly? Round answer to the nearest cent. Do not include any commas or the dollar sign in your response.

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Question

Christa wants to invest $50,000 in a retirement fund. One investment
offers 8% compounded quarterly. Another offers 7.75% compounded
continuously. How much more interest will she get after the first year
from the first investment that is compounded quarterly?
Round answer to the nearest cent. Do not include any commas or the
dollar sign in your response.

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Step 1: Future value when the interest rate is 8%

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Step 2: Future value when the interest rate is 7.75%

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Step 3: difference between these two future values.

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