Precision Engineering invested $110,000 at 6.5 percent interest, compounded annually for 4 years. How much interest on interest did the company earn over this period of time

$2,911.30

Explanation:

The computation of interest on interest is shown below:-

Interest on interest

= $110,000 × (1 + 0.065)^4 - ($110,000 + ($110,000 × 0.065 × 4))

= $110,000 × 1.286466351  - ($110,000 + $28,600)

= $141,511.299 - $138,600

= $2,911.30

Therefore for computing the interest on interest we simply solve the above equation.

true basically. have an awesome day ya'll.