Helga invested $1000 at 5% interest, compounded annually. What is the total amount of interest that Helga will have earned at the fourth year? Express your answer to a decimal to the nearest ten.
N=4; R=0.05;PV=1000; FV=PV*(1 + R)^N; print"FV =$",FV
FV =$ 1215.51 - Value of the investment after 4 years.
$1215.51 - $1,000 =$215.51 - Interest earned after 4 years. [Money should be rounded to the nearest hundred].
Future Value = 1000 (1+.05)4 Calculate this value
...then subtract the original $ 1000 to find her interest earned
