Five Friends All Open Investment Accounts Today

question 42

Multiple Choice

Five friends all open investment accounts today. Which one will withdraw the largest amount of money from their account assuming that they each withdraw their funds at the end of their initial
Investment period?

• A) John, who invests $1,000 for eight years at 6% simple interest.
• B) Terry, who invests $1,000 for four years at 9% with interest compounded annually.
• C) Alicia, who invests $800 for ten years at 11% with interest compounded annually.
• D) Kristi, who invests $1,200 for six years at 8% simple interest.
• E) Roger, who invests $900 for nine years at 9% with interest compounded annually.

---

Definitions:

Independent Variable

In an experimental setting, this is the variable that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Sample

Group of subjects selected from a larger population of subjects, usually selected randomly.

Population

In statistics and research, the entire group of individuals or instances about whom the information is desired; in biology, all the organisms of the same group or species living in a particular geographic area.

Correlational Method

A research strategy that involves measuring two or more variables to determine the degree of relationship between them.