Steve Invested $100 Two Years Ago at 10 Percent Interest

Multiple Choice

Steve invested $100 two years ago at 10 percent interest.The first year,he earned $10 interest on his $100 investment.He reinvested the $10.The second year,he earned $11 interest on his $110 investment.The extra $1 he earned in interest the second year is referred to as:

A) free interest.
B) bonus income.
C) simple interest.
D) interest on interest.
E) present value interest.