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

 Aug 20, 2019
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\(\text{for Cedric}\\ fv = \$12000(1+0.05)^{15} = \$24947.10\\~\\ \text{For Daniel}\\ fv = \$12000(1 + (0.07)15) = \$24600.00\\~\\ \text{The difference to the nearest dollar is $\$347$}\)

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 Aug 22, 2019
edited by Rom  Aug 22, 2019

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