About the interest-on-interest

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Reference no: EM131870428

1. Compounding with Different Interest Rates A deposit of $860 earns interest rates of 10.6 percent in the first year and 8.6 percent in the second year. What would be the second year future value?

$951.50

$1,885.12

$1,032.96

$1,025.12

2. Interest-on-Interest Consider a $2,300 deposit earning 9 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

$2,282.00

$626.00

$1,656.00

$165.60

Reference no: EM131870428

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