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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?

Guest Aug 5, 2018
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So Angela's amount would be 8000*(1.06^20), and bob's would be 10000*0.07*20+10000. We can use a calculator to find the values (because seriously, who wants to calculate 1.06^20?), and then we find the absolute differences. 

I hope this helped!

Guest Aug 5, 2018

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