How Much Interest Will Be Earned in the Next Year

question 68

Multiple Choice

How much interest will be earned in the next year on an investment paying 12 percent compounded annually if $100 was just credited to the account for interest?

• A)$88
• B)$100
• C)$112
• D)$200 The investment will again pay $100 plus interest on the previous interest:

---

Definitions:

Navajo

A Native American people of the Southwestern United States, known for their rich cultural heritage and history.

Sioux

A group of Native American tribes and First Nations peoples in North America, known for their rich history, culture, and language.

SIDS

The unexplained passing of a seemingly fit baby less than a year old, often in their sleep, is referred to as Sudden Infant Death Syndrome.

Infants

Very young children, especially those under one year of age, who are in the earliest stages of development.