Solution:
we are given that
James invests $10,000 in an account earning 6% interest, compounded annually.
Curtis invests $10,000 in an account earning 5% interest, compounded annually.
Given that no additional deposits are made, compare the balances of the two accounts after 10 years.
So here t=10 years.
As we know that
[tex]A=P(1+ \frac{r}{100} )^n[/tex]
So In James account after 10 years we have
[tex]A=10000(1+ \frac{6}{100} )^{10}[/tex]
[tex]A=10000(1+0.06 )^{10}[/tex]
[tex]A=10000(1.06 )^{10}=17908.5 \approx 17909[/tex] $
So In Curtis account after 10 years we have
[tex]A=10000(1+ \frac{5}{100} )^{10}[/tex]
[tex]A=10000(1+0.05 )^{10}[/tex]
[tex]A=10000(1.05 )^{10}=16288.9 \approx 16289[/tex] $
Hence james will have 17909-16289=1620$ more in his account after 10 years.
