Asked by
Kaidri Bornyi
on Dec 09, 2024Verified
An account was opened with $1,000 ten years ago. Today, the account balance is $1,500. If the account paid interest compounded annually, how much interest on interest was earned?
A) $86.20
B) $93.10
C) $102.39
D) $130.28
E) $500.00
Interest on Interest
The concept of earning interest on previously earned interest, contributing to compound growth.
Compounded Annually
Interest calculation method where the interest is added to the principal at the end of each year, and the total becomes the principal for the next year.
- Acquire knowledge on the theories of simple and compound interest.
- Analyze the impact of diverse rates and intervals on enhancing investment value.
Verified Answer
JS
Learning Objectives
- Acquire knowledge on the theories of simple and compound interest.
- Analyze the impact of diverse rates and intervals on enhancing investment value.