$10,000 is invested at 7% compounded annually. Over the next 25 years, how much of the investment's increase in value represents a. Earnings strictly on the original $10,000 principal? Total interest earned on original principal $ b. Earnings on re-invested earnings? (This amount reflects the cumulative effect of compounding.) (Round your answer to the nearest cent.) Earnings on re-invested earnings

$10,000 is invested at 7% compounded annually. Over the next 25 years, how much of the investment's increase in value represents a. Earnings strictly on the original $10,000 principal? Total interest earned on original principal $ b. Earnings on re-invested earnings? (This amount reflects the cumulative effect of compounding.) (Round your answer to the nearest cent.) Earnings on re-invested earnings

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 21PROB

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