How much total interest is earned on the original deposit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) How much is interest earned on interest?

The interest earned on interest is determined in the following way.

Explanation:

Calculate the future value as follows:

Future value=Present valuex(1+Interest rate)

=$1500 x (1+8%)⁵

=$1500 x 1.4693280768

=$2,203.9921152

or

$2,203.99

Calculate the total interest as follows:

Total Interest =Future value-Present Value

=$2,203.99-$1500

=$703.99

Calculate the simple interest

Simple interest=(Present value x Rate of interest x No of years)

=$1500 x8% x5

=$600

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