Decide Whether the Statement Makes Sense

question 155

Essay

Decide whether the statement makes sense. Explain your reasoning.
-Sue opened a savings account and deposited $10,000. On the same day Pat opened an
account at a different bank and also deposited $10,000. Both accounts had the same APR
and both were paying compound interest but after two years Sue had more in her account
than Pat did. Neither person made any additional deposits or withdrawals from their
account during those two years.

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Definitions:

Express Warranties

Explicit assurances provided by the seller about the quality, performance, or condition of a product.

Implied Warranty Of Merchantability

A legal presumption that goods sold by a merchant are fit for the general purpose for which they are sold.

Express Warranty

A clearly stated promise or guarantee about the quality or condition of a product or service made by a seller to a buyer.

Implied Warranty Of Merchantability

A legal presumption that ensures a product sold by a merchant meets certain quality and performance standards.