Interest earned on the reinvestment of previous interest payments is known as:

A. compound interest

B. Simple interest

C. interest on interest

D. both compound interest and interest on interest

An advantage of a corporate entity includes:

A. minimal organization requirements

B. minimal reporting requirements

C. easy to maintain control of a company's business affairs arising from the presence of other shareholders

D. easy to raise capital from the public via a share issue

You have been offered an investment that promises to double your money every 10 years. What is the approximate annual rate of return on the investment?

A. 7.0%

B. 7.1%

C. 7.2%

D. 8.0%