Interest-on-interest and moving cash flows

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Reference no: EM131927077

Interest-on-Interest Consider a $3,500 deposit earning 6 percent interest per year for 5 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?

$105.00

$1,050.00

$1,183.00

$133.00

2. Moving Cash Flows What is the value in year 6 of a $2,100 cash flow made in year 7 when interest rates are 9.4 percent?

$1,119.69

$1,224.94

$1,902.60

$1,919.56

Reference no: EM131927077

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