Question

1. lukes investment of $10000 earns interest at 2% per year, compounded annually over 4 years.

answer the following questions by repeated multiplication.
6a what is the value of the investment after 4 years?
write your answer to the nearest cent.
value = 10 824.20 dollars
value = 10 824.32 dollars
5 nice work!
6b what is the amount of interest earned?
interest = enter your next step here dollars

Explanation:

Step1: Calculate year 1 value

$10000 \times 1.02 = 10200$

Step2: Calculate year 2 value

$10200 \times 1.02 = 10404$

Step3: Calculate year 3 value

$10404 \times 1.02 = 10612.08$

Step4: Calculate year 4 value

$10612.08 \times 1.02 = 10824.3216$

Step5: Round to nearest cent

$10824.3216 \approx 10824.32$

Step6: Calculate earned interest

$10824.32 - 10000 = 824.32$

Answer:

6a. $\boldsymbol{10824.32}$ dollars
6b. $\boldsymbol{824.32}$ dollars