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jmc

algebra senior

Problem

Angela has deposited \8,\!0006\%\ 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?
Solution
We may find Angela's balance by simply finding \8,\!000(1 + 0.06)^{20} \approx \

We may find Bob's balance by finding \10,\!000(1 + 20 \cdot 0.07) \approx \

Therefore, the difference between their balances is roughly \25,\!657.08 - \24,\!000 \approx \boxed{\1,\!657}.$
Final answer
\$1,\!657