An Account Paying Annual Compound Interest Was Opened with $1,000

question 224

Multiple Choice

An account paying annual compound interest was opened with $1,000 ten years ago. Today, the account balance is $1,500. If the same interest rate is offered on an account paying simple interest, how much income would be earned each year over the same time period?

• A) $36.97
• B) $40.41
• C) $40.75
• D) $41.38
• E) $50.00

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Definitions:

Communication Deficits

Refers to difficulties or limitations in the ability to effectively exchange information, including speaking, listening, writing, or understanding.

Noxious Stimuli

Harmful or unpleasant sensations or factors that evoke a negative physiological or psychological response in organisms.

Cutaneous Stimulation

Stimulation applied to the skin surface to affect sensory nerves, often for therapeutic purposes, such as pain relief.

TENS Unit

A device that delivers small electrical impulses through electrodes on the skin to help relieve pain.