Question: $10,000 is invested at 7% compounded annually. Over the next 25 years, how much of the investments increase in value represents: a. Earnings strictly on

$10,000 is invested at 7% compounded annually. Over the next 25 years, how much of the investment’s increase in value represents:

a. Earnings strictly on the original $10,000 principal?

b. Earningsonre-investedearnings?(Thisamountreflectsthecumulativeeffectof compounding.)

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