Question
Art invested $100 two years ago at 8 percent interest. The first year, he earned $8 interest on his $100 investment. He reinvested the $8.
Art invested $100 two years ago at 8 percent interest. The first year, he earned $8 interest on his $100 investment. He reinvested the $8. The second year, he earned $8.64 interest on his $108 investment. The extra $.64 he earned in interest the second year is referred to as:
| Free interest. |
| Bonus income. |
| Simple interest. |
| Interest on interest. |
| Present value interest. |
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Essentials Of Corporate Fraud
Authors: Tracy L. Coenen
1st Edition
047019412X, 978-0470194126
