Five Friends All Open Investment Accounts Today

question 203

Multiple Choice

Five friends all open investment accounts today. Which one will withdraw the largest amount of money from their account assuming that they each withdraw their funds at the end of their initial investment period?

• A) John, who invests $1,000 for eight years at 6% simple interest.
• B) Terry, who invests $1,000 for four years at 9% with interest compounded annually.
• C) Alicia, who invests $800 for ten years at 11% with interest compounded annually.
• D) Kristi, who invests $1,200 for six years at 8% simple interest.
• E) Roger, who invests $900 for nine years at 9% with interest compounded annually.

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Definitions:

Metabolic Rate

The rate at which the body expends energy or burns calories, and it influences how quickly a person can gain or lose weight.

Stimulants

Substances that increase alertness, attention, and energy, by enhancing the activity of certain neurotransmitters in the brain.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body.

Sleep Disorders

Conditions that impair regular sleep patterns, leading to distress and affecting overall health and daytime functioning.