Suppose you invested $$300000$ at a rate of $7\%,$ compounded annually. How much of the total interest earned after four years is due to the initial principal, and how much is due to the compounding effect $($interest on interest$)?($Hint: Total interest due to compounding effect $=$ Total interest $-$ Total simple interest$)$

  

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To calculate the total amount after 4 years when 300000 is invested at a rate of 7 compounded annual... View the full answer