Year

Opening Balance

Interest @ 10%

Closing Balance

1

1.0000

0.1000

1.1000

2

1.1000

0.1100

1.2100

3

1.2100

0.1210

1.3310

4

1.3310

0.1331

1.4641

5

1.4641

0.1464

1.6105

6

1.6105

0.1611

1.7716

7

1.7716

0.1772

1.9487

8

1.9487

0.1949

2.1436

9

2.1436

0.2144

2.3579

10

2.3579

0.2358

2.5937

Using the table above, the interest earned (at a 10% interest rate) on $1,000 in year 7 is:

Select one:

a.$1,949

b.$0.18

c.$2,594

d.$177