Need help with part B. I am trying to understand what I am doing here. I am not

Question

Need help with part B. I am trying to understand what I am doing here. I am not just looking for the answer so please show me where I am going wrong. My work is below part B problem

Question:

Christine O'Brien, who is self-employed, wants to invest $80,000 in a pension plan. One investment offers 8% compounded quarterly. Another offers 7.75% compounded continuously. a. Which investment will earn the most interest in 5 years? b. How much more will the better plan earn?

A. Choose the investment which will earn the most interest below. compounded continuously Your answer is correct.

B. The difference is $2476.48 (Round to the nearest cent as needed.)

Sorry, that’s not correct

So, this is what I am doing and not sure what I am doing wrong.

QTR Comp Interest

P=80000 R=0.08 N=4 T=5

A=80,000(1+ 0.08/4)(4)(5)

A= $118,875.79 - 80,000.00

Interest = $38,875.79

Continuously

P=80000 R=0.075 N=1 T=5

A=80,000e (0.075)(5)

=$116,399.31 - 80,000.00

Interest= $ 36399.31

Qtr $38875.79 - Cont $36399.31 = $ 2476.48 (which is wrong answer)

Explanation / Answer

In continuously compounding the interest rate is 7.75%(0.0775) but you have taken only 7.5%(0.075).

if r = 0.0775 then

A = 117863.43

then interest will be = 117863.43-80000 = 37863.43

Qtr $38875.79 - cont $37863.43 = $1012.36

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