Suppose you invest $1200 in an account paying 3 % interest per year.
a. What is the balance in the account after 4 years? How much of this balance corresponds to "interest on interest"?
b. What is the balance in the account after 25 years? How much of this balance corresponds to "interest on interest"?
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Part 1
a. What is the balance in the account after 4 years?
The balance in the account (compound interest) after 4 years is $