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 146 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

at

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

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?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called
How to calculate monthly mortgage payments at varying amortization periods (Question 1) How to calculate monthly mortgage payments at varying amortization periods (Question 1)
How to calculate simple interest (Part 2) How to calculate simple interest (Part 2)
How to calculate simple interest (Part 3) How to calculate simple interest (Part 3)
Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ... Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ...
Results of the serial dilution technique and subsequent culture of bacteria Results of the serial dilution technique and subsequent culture of bacteria
Video: Muscle cell structures - actin, myosin and titin filaments

For a complete list of videos, visit our video library