Calculate the Future Amounts You Would Have If $2,000 Were

question 39

Multiple Choice

Calculate the future amounts you would have if $2,000 were invested at 8% for 4 years with simple interest and if it were invested with annual compounding. What is the difference between the two to the nearest cent, and does compound interest yield more or less than simple interest?

• A) at simple interest, $2,640 with annual compounding, $2,721
• Difference, $81 more;
• B) at simple interest, $2,720.98 with annual compounding, $2,640
• Difference, $80.98 more;
• C) at simple interest, $2,720.98 with annual compounding, $2,640
• Difference, $80.98 less;
• D) at simple interest, $2,640 with annual compounding, $2,720.98
• Difference, $80.98 less;
• E) at simple interest, $2,640 with annual compounding, $2,720.98
• Difference, $80.98 more;

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Definitions:

Subcultures

Groups within a larger culture that have their own distinct values, behaviors, and traditions.

Dominant Values

The core principles and standards that are most important and widely upheld within a society, organization, or group.

Organizational Culture

encompasses the values, beliefs, behaviors, and norms that are shared among members of an organization, shaping its social and psychological environment.

Simple Models

Basic or straightforward frameworks or systems, often used to explain or simplify complex phenomena or processes.