# If the account paid interest compounded annually, how much interest on interest was earned?

If the account paid interest compounded annually, how much interest on interest was earned? A) \$ 86.20 B) \$ 93.10 C) \$102.39 D) \$130.28 E) \$500.00 19. You received a \$1 savings account earning 5% on your 1st birthday. How much will you have in the account on your 40th birthday if you don”t withdraw any money before then? A) \$5.89 B) \$6.34 C) \$6.70 D) \$7.00 E) \$7.04 20. You will receive a \$100,000 inheritance in 20 years. You can invest that money today at 6% compounded annually. What is the present value of your inheritance? A) \$ 27,491.53 B) \$ 29,767.15 C) \$ 31,180.47 D) \$ 35,492.34 E) \$100,000.00 21. You need \$2,000 to buy a new stereo for your car. If you have \$800 to invest at 5% compounded annually, how long will you have to wait to buy the stereo? A) 6.58 years B) 8.42 years C) 14.58 years D) 15.75 years E) 18.78 years 22. Many economists view a 3% annual inflation rate as “acceptable”. Assuming a 3% annual increase in the price of automobiles, how much will a new Suburb