Isabelle Wants to Invest $1,000

question 231

Multiple Choice

Isabelle wants to invest $1,000. She wants to withdraw her money three years from now. Which bank should she use if she wishes to maximize her investment?

• A) Bank A, which offers a simple rate of 4%.
• B) Bank B, which offers a simple rate of 5%.
• C) Bank C, which offers a rate of 4% compounded annually.
• D) Bank D, which offers a rate of 5% compounded monthly.
• E) Bank E, which offers a rate of 5% compounded annually.

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Definitions:

Alveolar Walls

Thin layers of cells in the lungs where gas exchange between air and blood occurs.

Inflammation

The body's response to injury or infection, marked by redness, heat, swelling, and pain.

Infant

A young child or baby who is in the earliest stage of development.