Olivia invested $4,600 in an account paying an interest rate of 3 3/8% compounded daily. Ava invested $4,600 in an account paying an interest rate of 2 7/8% compounded quarterly. After 13 years, how much more money would Olivia have in her account than Ava, to the nearest dollar?

Olivia has $460 in her account more than Ava.

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

Considering Olivia's investment

P = 4600

r = 3.375% = 3.375/100 = 0.03375

n = 365 because it was compounded 365 times in a year.

t = 13 years

Therefore,.

A = 4600(1+0.03375/365)^365 × 13

A = 4600(1+0.0000924)^4745

A = 4600(1.0000924)^4745

A = 4600 × 1.55

A = 7130

Considering Ava's investment

P = 4600

r = 2.875% = 3.875/100 = 0.02875

n = 4 because it was compounded 4 times in a year.

t = 13 years

Therefore,.

A = 4600(1+0.02875/4)^4 × 13

A = 4600(1+0.0071875)^52

A = 4600(1.0071875)^52

A = 4600 × 1.45

A = 6670

The difference in amount earned is

7130 - 6670 = 460

step-by-step explanation: