A deposit of $300 earns interest rates of 7 percent in the first year and 10 percent in the second year. What would be the second year future value?
A) $351.00
B) $353.10
C) $602.17
D) $651.00

Question

Quizplus · Accepted Answer

The first year, the deposit earns 7% interest, so it becomes $300 * 1.07 = $321. The second year, it earns 10% interest on the new amount, so it becomes $321 * 1.10 = $353.10.

A Deposit of $300 Earns Interest Rates of 7 Percent