You Have $500 in an Account Which Pays 5% Compound

question 63

Multiple Choice

You have $500 in an account which pays 5% compound interest. How much additional interest would you earn over four years if you moved the money to an account earning 6%?

• A) $21.89
• B) $23.49
• C) $24.93
• D) $25.88
• E) $29.94

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Definitions:

Recollections

The action or faculty of remembering something.

Critical Thinking

is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication.

Alternative Explanations

Different theories or reasons provided to account for certain observations or phenomena, offering multiple perspectives.

Argumentative

Characterized by or displaying the tendency to engage in or be prone to arguing or disputes.