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Questions regarding the interest and investments

Problem:

Here are two questions regarding the interest and investments.

Question 1: Margaret Hillman invested $8,000 at 1.8% compounded quarterly for one year. Find the future value and the interest earned for the year.

Question 2: How much should Linda Bryan set aside now to buy equipment that costs $6,200 in one year? The current interest rate is 0.95% annually, compounded annually.

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Finance Basics: Questions regarding the interest and investments

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Finance Basics: Questions regarding the interest and investments

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