Jeff Invests $3,000 in an Account That Pays 7% Simple

question 134

Multiple Choice

Jeff invests $3,000 in an account that pays 7% simple interest. How much more could he have earned over a 20-year period if the interest had compounded annually?

• A) $2,840.00
• B) $3,212.12
• C) $3,778.54
• D) $4,087.18
• E) $4,409.05

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Definitions:

Discrepancy

is a lack of consistency or agreement between two or more facts, figures, or perspectives.

Desired State

The preferred condition or situation a person or organization aims to achieve in the future.

Better Value

Offers products or services that are perceived to offer superior benefits relative to their cost.

Extended Problem Solving

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk.