Arthur invested $500 two years ago at 5 percent interest. The first year, he earned $25 interest on his $500 investment. He left the $25 in his account instead of withdrawing the amount for spending. The second year, he earned $26.25 interest onhis $525 investment. The extra $1.25 he earned in interest the second year was due to ____________.a. free Interest b. bonus income c. simple Interest d. Interest (earned) on interest e. present value interest
