Sun Lee Has $500 Today

question 72

Multiple Choice

Sun Lee has $500 today. Which one of the following statements is correct if she invests this money at a positive rate of interest for five years?

• A) The higher the interest rate she earns, the less money she will have in the future.
• B) The higher the interest rate, the longer she has to wait for her money to grow to $1,000 in value.
• C) If Sun Lee can earn 7%, she will have to wait about six years to have $1,000 total.
• D) At the end of the five years Sun Lee will have less money if she invests at 5% rather than at 7%.
• E) At 10% interest Sun Lee should expect to have $1,000 in her account at the end of the five years.

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Definitions:

Real Property

Refers to land and anything permanently attached to it, such as buildings and structures, legally considered immovable.

Jury Trial

A legal proceeding in which a jury makes a decision or findings of fact, which then direct the actions of a judge.

Foreclosure

The right of a mortgagee to apply to a court to have property sold when the mortgagor defaults or fails to perform some agreement in the mortgage.

Junior Mortgage

A mortgage subject to a prior mortgage.