Ito Invested $4,350

question 164

Multiple Choice

Ito invested $4,350. After seven years he had an account value of $6,980.58. Maria invested $5,920. After six years she had an account value of $8,834.62. Which one of the following
Statements is correct?

• A) Maria earned a rate of interest that was 0.9% higher than Ito's rate.
• B) Maria earned a rate of interest of 5.89%.
• C) Ito earned a rate of interest that was 0.09% higher than Maria's rate.
• D) Ito earned a rate of interest of 6.90%.
• E) Both Ito and Maria earned the same rate of interest.

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Definitions:

Random Sample

A method of selecting a subset of individuals from a population in which each person has an equal chance of being chosen.

Double-Blind Experiment

An experimental design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Case Study

A detailed analysis of a person, group, event, or situation over a period of time, used as a research method in psychology and other disciplines.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.