1. Interest-on-Interest Consider a $2,100 deposit earning 8 percent interest per year for 5 years. How much total interest is earned on interest (excluding interest earned on the original deposit)?
$985.59
$145.59
$84.00
$840.00
2. Moving Cash Flows What is the value in year 11 of a $1,100 cash flow made in year 6 when the interest rates are 11 percent?
$1,705.00
$3,466.93
$1,853.56
$349.01