31) Interest earned on both the initial principal and the periods is called: interest reinvested from the prior a) Free interest b) Dual interest- c) Simple interest d) Interest on interest e) Compound interest - 32) Don Lemon invested $2,000 six years ago at 4.5%. He spends his earnings as soon ashe of earns any interest so he only receives interest on his initial investment. Whichty interest is Mr. Lemon earning? a) Free interest b) Complex interest c) Simple interest d) Interest on interest e) Compound interest. future. The interest rate he used in this process is referred to as which one of the following? 33) Alan Fishman just computed the present value of a $10,000 bonus he will receive in the a) Current yield b) Effective rate c) Compound rate d) Simple rate e) Discount rate 4) The process of determining the present value of future cash flows in order to know their worth today is referred to as: a) Compound interest valuation b) Interest on interest computation c) Discounted cash flow valuation d) Present value interest factoring e) Complex factoring