Suppose That Nora Invested $800 at 8

question 7

Multiple Choice

Suppose that Nora invested $800 at 8.5 % compounded annually for 7 years and Patti invested $800  at 8 % compounded quarterly for 7  years. At the end of 7 years, who will have the most money and by how much (to the nearest dollar) ?

• A) Patti by $23
• B) Nora by $18
• C) Patti by $18
• D) Nora by $23
• E) They will have equal amounts of money.

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Definitions:

Question Of Fact

A matter that pertains to what actually happened in a case, as opposed to a question of law, which deals with the application of legal principles.

Court

A judicial institution with the authority to resolve lawsuits, disputes, and interpret the law.

Judge

An official appointed to preside over court proceedings, either alone or as a part of a panel, and make decisions or judgments.

Balance Of Probabilities

The burden of proof in civil matters; the person making the claim must provide evidence to convince the court that there is a greater than 50 percent likelihood that the event took place as claimed.