Joshua invested $750 in an account paying an interest rate of 3\tfrac{1}{4}3 4 1 ​ % compounded quarterly. Josiah invested $750 in an account paying an interest rate of 2\tfrac{5}{8}2 8 5 ​ % compounded annually. After 18 years, how much more money would Joshua have in his account than Josiah, to the nearest dollar?

Due to the difference in the interest rate and the quarterly compounding, Joshua will have $212.24 more than Josiah.

Step-by-step explanation:

Giving the following information:

Joshua:

Initial investment (PV)= $750

Interest rate (i)= 0.0341/4= 0.008525

Number of periods (n)= 18*4= 72 quarters

Josiah:

Initial investment (PV)= $750

Interest rate (i)= 0.0285

Number of periods (n)= 18 years

To calculate the future value of each one, we need to use the following formula:

FV= PV*(1 + i)^n

Joshua:

FV= 750*(1.008525^72)

FV= $1,381.98

Josiah:

FV= 750*(1.0285^18)

FV= $1,169.74

Due to the difference in the interest rate and the quarterly compounding, Joshua will have $212.24 more than Josiah.

step-by-step explanation:

so first find out how much each is worth.

quarter= 25 cents

dime= 10 cents

pennies= 1 cent

then multiply each by how much each is worth.

200                     150                   300

x                         x                     x   1

  25                       10              

                                  300

1000                     1500

+                          

4000                                      

5000                                  

then count 2 from the back and add a period.

$50.00

$15.00

$3.00

and then add them

  $50.00

+

  $15.00

+

    $3.00

$68.00

so sunghee has $68.00

read more on -