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    Simple and Annually Compounding Interest

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    Sunny Shine invested $4,000 at 5% annual interest, and left the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Sunny withdrew the accumulated amount of money.

    1. What amount did Sunny withdraw assuming the investment earns simple interest?

    2. What amount did Sunny withdraw assuming the investment earns interest compound annually?

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    https://brainmass.com/business/accounting/simple-and-annually-compounding-interest-159303

    Solution Preview

    Sunny Shine invested $4,000 at 5% annual interest, and left the money invested without withdrawing any of the interest
    for 10 years. At the end of the ...

    Solution Summary

    Word doc attached gives calculations to find how much a company makes off a $4,000 investment at 5%.

    $2.19

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