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 127 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!

mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

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?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Index of seed size and hardiness prior to, during, and after drought. Index of seed size and hardiness prior to, during, and after drought.
How to calculate simple interest (Part 1) How to calculate simple interest (Part 1)
How to calculate simple interest (Part 5; r = I/Pt) How to calculate simple interest (Part 5; r = I/Pt)
You deposit $2000 each year into an account earning 4% interest compounded annually. How much ... You deposit $2000 each year into an account earning 4% interest compounded annually. How much ...
Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ... Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ...
Compound interest Compound interest
Video: Hip Animation

For a complete list of videos, visit our video library