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i percent interest. The first year, he carned $8 interes e on his S100 investment. He reinvested the $8. The second year, he earned $8.64 interest on his 26) Jack invested $100 two years ago at is $108 investment. The extra $0.64 he earnod in interest the second year is referred to as: a) Free interest b) Bonus income c) Simple interest d) Compound interest. Present value interest The interest rate 27) Today, you borrowed $6,200 on your crodit card to purchase some furniture. T is 14.9%, compounded monthly How long will it take you to pay or this debt assuming that you C do not charge anything else and make regular payments of $120 a) 3.35 years 6.40 years 6.93 years d) 7.23 years e) 7.31 years 28) You are going to take a loan out on a car and want the lowest rate you can get. The only significant difference between these loans is their interest rates Given the following information, which offer shouald you accep? (Assume a 365-day year) oner AAT5% APR with daily compounding 6 4 Offer B: 6.8% APR with monthly compounding 7 Offer C 7.0% APR with annual compounding 7J0 Offer D 6 825% APR with quarterly Offer E: 6.85% APR with semi-annual compounding a) Offer A b) Offer B e) Offer C d) Offer D GOfter E