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How many dollars in interest are earned in two years on a deposit of $10,000 invested at 4.6% and compounded annually? Express your answer to the nearest cent.

 Dec 11, 2021
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FV=PV x  [1  +  R]^N

 

FV==10,000 x  [1  +  0.046]^2

FV==10,000 x [1.046]^2

FV==10,000 x   1.094116

FV==$10,941.16 - principal + interest over 2 years.

 

$10,941.16  -  $10,000 ==$941.16 - interest earned over 2 years.

 Dec 11, 2021

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