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can you answer all questions please? 1) Interest earned on both the initial principal and the interest reinvested from the prior periods is called: A.

image text in transcribedcan you answer all questions please?

1) Interest earned on both the initial principal and the interest reinvested from the prior periods is called: A. Free interest B. Dual interest C. Simple interest D. Interest on interest E. Compound interest 2) Don Lemon invested $2,000 six years ago at 4.5\%. He spends his earnings as soon as he earns any interest so he only receives interest on his initial investment. Which type of interest is Mr. Lemon earning? A. Free interest B. Complex interest C. Simple interest D. Interest on interest E. Compound interest. 3) Alan Fishman just computed the present value of a $10,000 bonus he will receive in the future. The interest rate he used in this process is referred to as which one of the following? A. Current yield B. Effective rate C. Compound rate D. Simple rate E. Discount rate 4) The process of determining the present value of future cash flows in order to know their worth today is referred to as: A. Compound interest valuation B. Interest on interest computation C. Discounted cash flow valuation D. Present value interest factoring E. Complex factoring

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