Dan Wanted to Invest His Savings of $1000

Multiple Choice

Dan wanted to invest his savings of $1000.00. He found an investment opportunity that would earn 7 percent interest compounded annually each year for the next two years. If he puts his money into this investment, in the first year he will earn $70 in interest, while in the second year he will earn _____ in interest.

A) $14.70
B) $77
C) $74.90
D) $107.77