solution

Suppose you invest $1,100 in an account paying 4% interest per year.

a. What is the balance in the account after 4 years? How much of this balance corresponds to “interest on interest”?

b. What is the balance in the account after 33 years? How much of this balance corresponds to “interest on interest”?

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a. What is the balance in the account after 4 years? The balance in the account after 4 years is $ 1286.8. (Round to the nearest cent.) How much of this balance corresponds to “interest on interest”? The amount that corresponds to interest on interest $ 176. (Round to the nearest cent.)
 
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