If You Have a Choice to Earn Simple Interest on $10,000

question 56

Multiple Choice

If you have a choice to earn simple interest on $10,000 for three years at 8% or annually compound interest at 7.5% for three years which one will pay more and by how much?

• A)Simple interest by $50.00
• B)Compound interest by $22.97
• C)Compound interest by $150.75
• D)Compound interest by $150.00
• E)None of the above.

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Definitions:

Moral Imperative

A principle or obligation that is ethically necessary or required, compelling a person to act in a certain way.

Ethical Intensity

The degree of importance or impact an ethical issue has, based on its consequences, social consensus, and probability of harm.

Federal Law

Legislation enacted by the national government of a sovereign state that applies to the entire country.

Social Consensus

A general agreement among the members of a given group or society, reflecting a common understanding or shared values and beliefs.