How Much Interest Is Earned in the Third Year on a $1,000

question 67

Multiple Choice

How much interest is earned in the third year on a $1,000 deposit that earns 7 percent interest compounded annually?

• A)$70.00
• B)$80.14
• C)$105.62
• D)$140.00 100 x (1.07)² = $1,144.90 after 2 years.

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