Scenario: Consider the Following Two Options

question 72

Multiple Choice

Scenario: Consider the following two options. You can either invest $30,000 in a bank that offers you an interest rate of 6 percent compounded annually for 30 years, or you can lend $30,000 to your friend for 30 years at an interest rate of 10 percent compounded annually.
-Refer to the scenario above.Which of the following is true?

• A) Investing in the bank will provide you a return of $3,521,725.
• B) Investing in the bank is comparatively more profitable for you.
• C) Lending to your friend is comparatively more profitable for you.
• D) You will receive $563,987.92 from your friend after 30 years.

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Definitions:

Consanguineous Matings

Reproductive relationships between individuals who are closely related genetically, often leading to an increase in the probability of their offspring inheriting genetic disorders.

Autosomal Recessive Alleles

Alleles of a gene located on an autosome that need to be present in two copies (homozygous) in order for a trait or disorder to manifest.

Genetic Screening

A systematic search through a population for individuals with a genotype or karyotype that might cause a serious genetic disease in them or their offspring.

Newborns

Very young babies, often defined as being within the first hours to several weeks of life.