The total interest earned is 3192 100 3092 the simple

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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...
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This document was uploaded on 03/17/2014 for the course COMM 298 at University of British Columbia.

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