Use the Table to Solve the Problem

question 8

Multiple Choice

Use the table to solve the problem. Round to the nearest cent.
-A bank has $550,000 to lend for 9 months. It can lend it to a local contractor at a simple interest rate of 12%, or it can lend it to a small business that will pay 12% compounded monthly. If the bank wants to maximize its interest earned, who should receive the loan and what is the additional interest earned?

• A)Contractor; $2,029.50
• B)Business; $2,029.50
• C)Business; $925,694.00
• D)Contractor; $14,470.50

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Definitions:

Old Age

The latter stage of the human lifespan, characterized by declines in physical and sometimes cognitive function, and often involving retirement from work and increased health care needs.

Death Anxiety

A learned emotional response to death-related phenomena characterized by extreme apprehension; used synonymously with death fear.

Thanatologists

Specialists who study the psychological and social aspects surrounding death and dying.

Death Education

The process of teaching and learning about the biological, sociological, psychological, and cultural aspects of death, dying, and bereavement.