With the Power of Compounding, a $500 Deposit in a Savings

question 208

Multiple Choice

With the power of compounding, a $500 deposit in a savings account that earns 3% interest per year will earn how much in total interest after 10 years?

• A) less than 15%
• B) between 15% and 30%
• C) exactly 30%
• D) more than 30%

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Definitions:

Decay

The natural process of decomposition or decline in quality, strength, or vigor over time.

Encoding Failure

A situation in which information fails to be stored into long-term memory, leading to the inability to recall it later.

Elaboration Failure

The inability to add detail or supplement information to a memory or concept, often leading to a lack of depth in understanding or recall.

Retroactive Interference

A process where new information interferes with the ability to recall older information.