An insurances fund invests $70,600 in real estate and earns 14% per year on the investment. How much money is earned per year? .tricky
Not so tricky.
70,600 * 0.14 = ?
Actually it could be tricky if studying compound interest.
.14 times whatever the house is worth now
value = 70,600 (1.14)^n
amount earned in year n = 70,600[ (1.14)^n - (1.14)^(n-1)]
so is it 9884?
To calculate how much money is earned per year, we need to determine 14% of the investment amount.
To do this, you can multiply the investment amount by 14% (or 0.14 as a decimal).
Let's compute it:
$70,600 * 0.14 = $9,884
Therefore, the insurance fund earns $9,884 per year on their real estate investment.