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 223 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
Gracias!

Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

How to calculate monthly payments at varying amortization periods (Question 3) How to calculate monthly payments at varying amortization periods (Question 3)
How to calculate simple interest (Part 1) How to calculate simple interest (Part 1)
How to calculate simple interest (Part 4; P = I/rt) How to calculate simple interest (Part 4; P = I/rt)
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Compound interest Compound interest
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library