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\mathrm{.}6478$ then ENTER $77342\mathrm{.}65$ 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 too far off.

Note: Always assume compound interest throughout the course, unless specifically instructed to work with simple interest.

Assume you borrow $$4,000$ from a bank, for $5$ years. This means that on the day the loan is created, in year $0,$ the balance that you owe is

$$4,000.$ Further assume you do not make any payments to the bank until year $5,$ and just let the balance you owe accumulate, and the bank is

charging you $1\mathrm{.}07\%$ annual interest rate. How much of interest $($in dollars$)$ will be added to your account balance, that you owe, at the end of

year $3,$ for the interest that accumulated during year $3($give only the interest that accumulated in year $3$ as your answer, do not include

interest that accumulated in years $1$ and $2)?$