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Angela has deposited  into an account that pays  interest compounded annually.

Bob has deposited  into an account that pays  simple annual interest.

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

 Dec 1, 2021
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Angela: $8000 (1.06)^20 = 25657.08$

 

Bob: $10000 (1.07)^20 = 38696.84$

 

Difference is 13040, to nearest dollar.

 Dec 1, 2021

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