could you help me please with last question What is the future value? (Do not ro

ID: 2706322 • Letter: C

Question

could you help me please with last question

What is the future value? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

How much total interest is earned on the original deposit? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

How much is interest earned on interest? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Consider a $5,500 deposit earning 8 percent interest per year for 8 years.

Future value = 5500 * (1.08)^8 = 10,180.11616

Total interest earned on original deposit = 5500 * 8% * 8 years = 3520

Interest earned on interest = Future value - Principal - Interest earned on original deposit = 10,180.11616 - 5500 - 3520 = 1160.11616

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