1 what is the amount of interest earned after two years on

Question

1. What is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually?

• $8.00
• $4.08
• $8.16
• $4.00

2. What is the amount of compound interest earned after three years on a $100 deposit paying 8 percent interest annually?

• $24.00
• $8.00
• $16.64
• $25.97

3. A business just took out a loan for $100,000 at 10% interest. If the business pays the loan off in three months, how much did the business pay in interest?

• $2,500.00
• $10.00
• $250.00
• $10,000.00

4. What is the annual percentage yield (APY) for a deposit paying 5 percent interest with monthly compounding?

• 5.00%
• 5.12%
• 79.59%
• 0.42%