Kevin Deposits a Certain Sum in a Bank at an Annual

question 104

Multiple Choice

Kevin deposits a certain sum in a bank at an annual compound rate of interest for 2 years.Interest in the second year will be calculated on ________.

• A) the principal amount only
• B) the amount in the account after 1 year
• C) the sum of the principal amount and the amount in the account after 1 year
• D) the difference between the principal amount and the amount in the account after 1 year