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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.

 Dec 19, 2020
 #1
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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].

 Dec 19, 2020
 #2
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Future Value =  1000 (1+.05)4     Calculate this value

                                                         ...then subtract the original $ 1000 to find her interest earned

 Dec 19, 2020

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