Questions 11-15 all refer to the following
situation: The First Ojai National Bank advertises a CD that pays
8.2% simple interest for two years. Suppose we were to invest
$1,485 in such a CD.
13. The amount of interest earned in the second year is:
a. $131.76
Nope,
remember
that, with simple interest, past interest is not added to the
principle - it is removed from the account (paid out).
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