Mathematics

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

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  1. Not so tricky.

    70,600 * 0.14 = ?

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    Ms. Sue
  2. 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)]

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  3. so is it 9884?

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