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Kaidri Bornyi
on Dec 09, 2024

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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.
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Jerome ScottDec 10, 2024
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