Which of These 20-Year Plans Is Best? All Are at 8

question 119

Multiple Choice

Which of these 20-year plans is best? All are at 8% annually. Plan A: $\$ 960$ each year for 10 years, and then let the accumulated amount grow for 10 years.
Plan B: One payment of $\$ 7,680$ now, and let it grow.

• A) Plan B is better than Plan \(\mathbf { A }\).
• B) Plan \(\mathbf { A }\) is better than Plan B.
• C) There is no difference between Plan \(\mathbf { A }\) and Plan B.

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Definitions:

United States

A country located in North America, known for its diverse culture, strong economy, and influential role in global affairs.

Aggravated Assaults

Attacks or attempts to attack with the intent to cause severe bodily injury, often involving the use of a weapon or by means likely to produce death or grave harm.

Heated Arguments

Intense and emotional disputes or disagreements that can escalate due to strong opinions or heightened tensions.

Guns

Firearms designed to discharge projectiles (bullets or shells) at high velocities, used for hunting, sport, or combat.