Answer:
$16,755
Step-by-step explanation:
You want the difference in interest earned on $66,000 after 19 years between an account earning 6 3/8% compounded annually, and one earning 5 3/4% compounded continuously.
Interest formulas
The formula for the account value multiplier when interest is compounded annually is ...
k = (1 +r)^t . . . . . . compounded annually at rate r for t years
When interest is compounded continuously, the multiplier is ...
k = e^(rt)
Application
The difference in account values between the two rates is ...
∆value = $66,000·(1 +0.06375)^19 -e^(0.0575·19))
∆value ≈ $16,754.70
Benjamin will have about $16,755 more than Christian after 19 years.
