This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: ________ is simply the interest earned in subsequent periods on the interest earned in prior ... (Read 222 times)

lb_gilbert

  • Hero Member
  • *****
  • Posts: 588
on: Jul 10, 2018
________ is simply the interest earned in subsequent periods on the interest earned in prior periods.
 
  A) Quoted interest
  B) Anticipated interest
  C) Simple interest
  D) Compound interest

Question 2

An investment of 100 today is worth 116.64 at the end of two years if it earns an annual interest rate of 8. How much interest is earned in the first year and how much in the second year of this investment?
 
  A) The interest earned in year one is 8.32 and the interest earned in year two is 8.32.
  B) The interest earned in year one is 8.00 and the interest earned in year two is 8.64.
  C) The interest earned in year one is 8.64 and the interest earned in year two is 8.00.
  D) There is not enough information to solve this problem.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Perkypinki

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D

Answer to Question 2

Answer: B
Explanation: B) FV = PV  (1 + r)n = 100  (1.08)1 - 100 = 8.00 and
108(1.08)1 - 108 = 8.64


lb_gilbert

  • Member
  • Posts: 588
Reply 2 on: Jul 10, 2018
Excellent

scottmt

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

An example of the founder effect with subsequent adaptive radiation. An example of the founder effect with subsequent adaptive radiation.
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
This girl ran four spinning machines in a cotton mill in Whitnel, North Carolina. Only 4 feet, 3 inc This girl ran four spinning machines in a cotton mill in Whitnel, North Carolina. Only 4 feet, 3 inc
Shifts between Warm and Cold Periods during the Last 3 Million Years Shifts between Warm and Cold Periods during the Last 3 Million Years
How to calculate credit card interest when the interest is compounded How to calculate credit card interest when the interest is compounded
If 0.40 mol of NaN3 reacts completely in the reaction shown below, then ________ L of N2 will ... If 0.40 mol of NaN3 reacts completely in the reaction shown below, then ________ L of N2 will ...
Video: Muscle Fatigue and Recovery

For a complete list of videos, visit our video library