1. Compounding with Different Interest Rates A deposit of $860 earns interest rates of 10.6 percent in the first year and 8.6 percent in the second year. What would be the second year future value?
$951.50
$1,885.12
$1,032.96
$1,025.12
2. Interest-on-Interest Consider a $2,300 deposit earning 9 percent interest per year for 8 years. How much total interest is earned on the original deposit (excluding interest earned on interest)?
$2,282.00
$626.00
$1,656.00
$165.60