For an Investment of $100,000 at 9% Interest for 8

question 25

Multiple Choice

For an investment of $100,000 at 9% interest for 8 years, find (a) the simple interest, and (b) the
Compound interest if interest is calculated once per year.

• A)a. $72,000; b. $104,892.12
• B)a. $99,256.26; b. $104,892.12
• C)a. $72,000; b. $99,256.26
• D)a. $99,256.26; b. $72,000

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Definitions:

Benefits-Received Principle

An approach to funding public goods and services where payments are made by those who benefit from them, matching payment to benefit received.

Tax System

The organized method by which a government collects taxes from its citizens and businesses to fund public services and infrastructure.

Revenue

The total income generated by a business or organization from its activities, before any expenses are deducted.

Proportional Tax

A tax system where the tax rate is fixed and applied equally to all income levels, resulting in taxpayers paying the same percentage of their income regardless of earnings.