1. Steve invested $100 two years ago at 10 percent interest. The first year, he earned $10 interest on hts investment. He reinvested the $10. The second year, he earned $11 interest on his $110 investment. The extra $1 he earned in interest the second year is referred to as: A. free interest. B. bonus income. C. simple interest. D. interest on interest. E. present value interest. 2. What is the future value of $7,189 invested for 23 years at 9.25 percen t compounded annually? A. $22,483.60 B. $27,890.87 C. $38,991.07 D. $51,009.13 E. $54,999.88 3. Today, you earn a salary of $36,000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent? A. $55,032.54 B. $57,414.06 C. $58,235.24 D. $59,122.08 E. $59,360.45 4. This morning, TL Trucking invested $80,00o to help fund a company expansion project planned for A years from now. How much additional money will the firm have 4 years from now if it can earn s percent rather than 4 percent on its savings? A. $2,940.09 B. $3,65 1.82 C. $4,008. 17 D. $4,219.68 E. $4,711.08 hoct defined by which one of the following