Question
Johnny deposited $1000 in his savings account last year and earned $40 in interest. He has decided to leave the $40 in the account so
Johnny deposited $1000 in his savings account last year and earned $40 in interest. He has decided to leave the $40 in the account so that he can earn interest on the $40 this year. Assuming the interest rate does not change, how much will be the interest earned on last years interest earnings (interest on interest)?
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
