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

question 39

Multiple Choice

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

• A) Simple interest by $1,500.
• B) Compound interest by $22.97.
• C) Compound interest by $150.75.
• D) Simple interest by $150.00.

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Definitions:

Coerced

Being forced or pressured to act in a certain way without true consent, often under threat or manipulation.

Fundamental Attribution Error

The tendency to overemphasize personal traits and underemphasize situational factors when explaining other people's behavior.

Role-Playing

The act of assuming the role of a character or person, either for entertainment, education, or therapeutic purposes, to explore different scenarios and outcomes.

Act of Aggression

Behavior aimed at causing harm or intimidation towards others, either physically or psychologically.