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After Living All His Life in a Town That Pumps

question 116

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After living all his life in a town that pumps its water from relatively pure underground wells, John moves to a city that gets its water from a local river and must add chlorine to purify it. He totally dislikes the taste of the city water. His friends, who are long-time city residents, cannot understand his problem because they have experienced ________.


Definitions:

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Semiannual Interest

Interest that is paid or calculated twice a year, often used in bond payments.

Compounded Annually

This term describes interest on an investment that is calculated once a year, where the interest added also earns interest in subsequent years.

Withdrawals

Money taken out from a business by its owners for personal use.

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