Dan inherited $1000 from his grandmother's estate.He has found an investment opportunity that will earn 7% interest compounded annually each year for the next two years.If he puts his money into this investment,what will he earn in interest at the end of two years?
A)$107.77
B)$70
C)$14.70
D)$144.90

Question

Quizplus · Accepted Answer

First year interest: $1000 x 7% = $70
Second year interest: ($1000 + $70) x 7% = $77
Total interest earned over two years: $70 + $77 = $147
Therefore, option D is the correct answer.

Dan Inherited $1000 from His Grandmother's Estate