Question: How much interest will be earned in the second year on an investment paying 7% interest, compounded annually, if $350 was just credited to the

How much interest will be earned in the second year on an investment paying 7% interest, compounded annually, if $350 was just credited to the account for interest at the end of year 1?

a. $374.50

b. $325.50

c. $350.00

d. $5,724.50

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