This preview shows page 1. Sign up to view the full content.
Unformatted text preview: uch interest do you earn on interest earned previously (interest on interest)? The total interest earned is $3,192
$100 = $3,092. The simple interest earned is $100*45*0.08 = $360. Therefore the compound interest (interest on interest on interest) is $3,092
$360 = $2,732 Alternatively, we could have calculated the interest on interest as IoI = $3,192
$460 = $2,732 Clicker Example: Compound Interest  Suppose you invest $1000. The e...
View
Full
Document
This document was uploaded on 03/17/2014 for the course COMM 298 at University of British Columbia.
 Spring '14

Click to edit the document details