How much total interest is earned on interest

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1. Interest-on-Interest Consider a $2,100 deposit earning 8 percent interest per year for 5 years. How much total interest is earned on interest (excluding interest earned on the original deposit)?

$985.59

$145.59

$84.00

$840.00

2. Moving Cash Flows What is the value in year 11 of a $1,100 cash flow made in year 6 when the interest rates are 11 percent?

$1,705.00

$3,466.93

$1,853.56

$349.01

Reference no: EM131878381

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