Consider a $1,500 deposit earning 8 percent interest per year for five years. What is the future value? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Future $ 2,203.99 value How much total interest is earned on the original deposit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Total interest $ 703.99 earned How much is interest earned on interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Interest earned on $ 703.99 interest
Consider a $1,500 deposit earning 8 percent interest per year for five years. What is the future value? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Future $ 2,203.99 value How much total interest is earned on the original deposit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Total interest $ 703.99 earned How much is interest earned on interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Interest earned on $ 703.99 interest
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I need help calculating the interest earned on interest.
Transcribed Image Text:Consider a $1,500 deposit earning 8 percent interest per year for five years.
What is the future value? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer is complete and correct.
Future
$ 2,203.99
value
How much total interest is earned on the original deposit? (Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Answer is complete and correct.
Total interest
$
703.99
earned
How much is interest earned on interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer is complete but not entirely correct.
Interest earned on
$
703.99
interest
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