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jmc

algebra senior

Problem

Cedric has deposited \12,\!0005\%\ into an account that pays simple annual interest.

In years Cedric and Daniel compare their respective balances. To the nearest dollar, what is the positive difference between their balances?
Solution
We may find Cedric's balance by simply finding \12,\!000(1 + 0.05)^{15} \approx \

We may find Daniel balance by finding \12,\!000(1 + 15 \cdot 0.07) \approx \

Therefore, the difference between their balances is roughly \24,\!947.14 - \24,\!600 \approx \boxed{\347}.$
Final answer
\$347