consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest?

consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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consider a $5,600 deposit earning 10 percent interest per year for 10 years.

What is the future value?

How much total interest is earned on the original deposit?

How much is interest earned on interest?

(do not round intermediate calculations. Round your answer to 2 decimal places.)

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