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Could someone please answer this

 

https://web2.0calc.com/questions/interest-rates_3

 

I sort of need it kind of quickly!

 

Thanks so much!

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Cedric has deposited $12,000 into an account that pays 5% interest compounded annually. Daniel has deposited $12,000 into an account that pays 7% simple annual interest. In 15 years Cedric and Daniel compare their respective balances. To the nearest dollar, what is the positive difference between their balances?

 

 

Cedric will have   12000 * ( 1/05)^15  ≈ $ 24947.14

 

Daniel will have   12000 * (.07) * (15)  = $ 12600

 

Difference in balances  =  24947 - 12600   =  $ 12347

 

 

cool cool cool

CPhill  Dec 1, 2017

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