Question

Helga invested $1000 at 5% interest, compounded annually. What is the total amount of interest that Helga will have earned by the end of the fourth year? Express your answer to the nearest dollar.

Answer 1

1215

Explanation:

1000(1+5divided 1000)^4 = 1215.5

nearest dollar is 1216

Answer 2

1000(1+5divided 1000)^4 = 1215.5