Susie and Tim Are Twins

question 136

Essay

Susie and Tim are twins. Susie invests $5,000 at age 20 and earns 5% compound interest. Tim invests $10,000 at age 40 and earns 5% compound interest. No matter how long they live, Tim will never have as much money as Susie. Explain why.

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Definitions:

Adhesion

The process by which two surfaces are held together by intermolecular forces or mechanical interlocking.

Cohesion

The force that holds molecules of the same substance together, such as water molecules in a drop.

pH

A scale used to specify the acidity or alkalinity of an aqueous solution, with values ranging from 0 (very acidic) to 14 (very basic).

Capillary Action

Capillary action is the ability of a liquid to flow through narrow spaces without the assistance of, or even in opposition to, external forces like gravity, observed in phenomena such as water moving up a plant stem.