Answer:
$798
Step-by-step explanation:
Jack invested $7100 compounded continuously at an interest rate of 3⅝% which is 0.03625
Formula for future value of continuous compounding is;
FV = PVe^(rt)
Where;
FV is future value
PV is present value
r is interest rate
t is time
After 19 years;
FV = 7100 × e^(0.03625 × 19)
FV = $14137.697
Henry invested $7100 compounded monthly at an interest rate of 3⅜% which is 0.03375.
Formula for FV of monthly compounding is;
FV = PV(1 + i)^(n)
FV = 7100(1 + 0.03375)^(19)
FV = $13339.922
Thus, amount Jack has more than Henry = 14137.697 - 13339.922 = $797.775
Approximating to the nearest dollar gives $798
