Steve Invested $100 Two Years Ago at 10 Percent Interest

question 29

Multiple Choice

Steve invested $100 two years ago at 10 percent interest.The first year,he earned $10 interest on his $100 investment.He reinvested the $10.The second year,he earned $11 interest on his $110 investment.The extra $1 he earned in interest the second year is referred to as:

• A)free interest.
• B)bonus income.
• C)simple interest.
• D)interest on interest.
• E)present value interest.

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Definitions:

Compression

To exert force against, press.

Partial-Thickness Burn

A Partial-Thickness Burn is a type of burn affecting both the epidermis and certain parts of the dermis, causing pain, swelling, and blistering.

Second-Degree Burn

A type of burn that affects both the outer layer of skin (epidermis) and the underlying layer of skin (dermis), characterized by redness, swelling, and blistering.

Superficial Burn

A type of injury to the skin characterized by damage only to the outer layer, often resulting in pain and redness.