Answer: 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
