GENERAL INSTRUCTIONS ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT

FORMATTED IN DOLLARS WITH TWO DECIMAL PLACES, for instance if you compute $77.342.6478

then ENTER 7734265 AS YOUR ANSWER, DO NOT ROUND IN YOUR CALCULATION STEPS (use

calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built

into accepting/rejecting your answer, but if you round in your intermediate calculations you may

be loo far off.

Noe Always assume compound interest throughout the course, unless specifically instructed to

work with simple interest.

Assume you borrow $7000 from a bank, for 5 years. This means that on the day the loan is

crested, in yew O, the balance that you owe is $7000. Further assume you do not make any

payments to the bark until year S, and just let the balance you owe accumulate, and the bank is

charging you 1.51% annual interest rate. How much of interest (in dollars) will be added to your

overall account balance, that you owe, at the end of year 3, for the interest that accumulated

during year 3?