How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the account for interest?
A) $88
B) $100
C) $112
D) $200

Name: How much interest will be earned in the next year on an investment paying 12% compounded annually if $100 was just credited to the account for interest? A) $88 B) $100 C) $112 D) $200
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Question

Quizplus · Accepted Answer

The investment will again pay $100 plus interest on the previous interest:$100 × 1.12 = $112

How Much Interest Will Be Earned in the Next Year