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Angela has deposited \(\$8,\!000\) into an account that pays \(6\%\) interest compounded annually.

 

Bob has deposited \(\$10,\!000\) into an account that pays \(7\%\) simple annual interest.

 

In 20 years Angela and Bob compare their respective balances. To the nearest dollar, what is the positive difference between their balances?

 

I know that this is a repost but the other answer was wrong.

Thank you

 Aug 30, 2019
 #1
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Amt in Angela's account after 20 years  = 8000(1.06)^20  = $25657.08

 

Amt in Bob's account after 20  years  =  10000 + 10000(.07)(20)  = $24000

 

Differnce in balances   =  25657 - 24000  =  $1657

 

 

cool cool cool

 Aug 30, 2019

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