Find the Compound Interest Earned

question 89

Multiple Choice

Find the compound interest earned. Round to the nearest cent.
-$700 at 8% compounded semiannually for 4 years

• A) $252.34
• B) $595.65
• C) $258.00
• D) $118.90

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Definitions:

Earnings Rate

The rate at which a company or investment is generating income, typically expressed as a percentage of the investment or capital employed.

Inflation

A period when prices in general are rising and the purchasing power of money is declining.

Price Levels

General price indices reflecting the overall movement of prices within an economy over a period of time, affecting purchasing power and inflation rates.

Present Value

The present worth of a future sum of money or series of cash flows, considering a given return rate.