1. **State the problem:** Jamar invests 110 at 2\frac{1}{8}% interest compounded quarterly. Malika invests 110 at 1\frac{1}{2}% interest compounded monthly. We want to find how much more money Jamar has than Malika after 7 years. 2. **Formula for compound interest:** $$A = P\left(1 + \frac{r}{n}\right)^{nt}$$ where: - $A$ is the amount after time $t$ - $P$ is the principal (initial amount) - $r$ is the annual interest rate (decimal) - $n$ is the number of compounding periods per year - $t$ is the time in years 3. **Convert interest rates to decimals:** - Jamar's rate: $2\frac{1}{8}\% = 2 + \frac{1}{8} = 2.125\% = 0.02125$ - Malika's rate: $1\frac{1}{2}\% = 1.5\% = 0.015$ 4. **Calculate Jamar's amount:** - $P = 110$ - $r = 0.02125$ - $n = 4$ (quarterly) - $t = 7$ $$A_J = 110 \left(1 + \frac{0.02125}{4}\right)^{4 \times 7} = 110 \left(1 + 0.0053125\right)^{28} = 110 \times 1.0053125^{28}$$ Calculate $1.0053125^{28}$: $$1.0053125^{28} \approx 1.1589$$ So, $$A_J \approx 110 \times 1.1589 = 127.48$$ 5. **Calculate Malika's amount:** - $P = 110$ - $r = 0.015$ - $n = 12$ (monthly) - $t = 7$ $$A_M = 110 \left(1 + \frac{0.015}{12}\right)^{12 \times 7} = 110 \left(1 + 0.00125\right)^{84} = 110 \times 1.00125^{84}$$ Calculate $1.00125^{84}$: $$1.00125^{84} \approx 1.1097$$ So, $$A_M \approx 110 \times 1.1097 = 122.07$$ 6. **Find the difference:** $$\text{Difference} = A_J - A_M = 127.48 - 122.07 = 5.41$$ Rounded to the nearest dollar: $$\boxed{5}$$ **Answer:** Jamar would have 5 more dollars than Malika after 7 years.