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Mike invests $R5,000.00$ at $10\%$ interest compounded annually. What is the interest calculation for the first year of the investment?
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Mike invests $R5,000.00$ at $10\%$ interest compounded annually.

The interest calculation for the first year of the investment is as follows:

$A = P (1 + r)^n$

$A = 5000(1 + 0.10)^1$

$A = R5,500$

The interest amount:

$CI = A – P CI$

$= 5500 – 5000$

$CI = R500$
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