If You Have a Choice to Earn Simple Interest on $10,000

question 21

Multiple Choice

If you have a choice to earn simple interest on $10,000 for three years at 8% or annually compounded interest at 7.5% for three years which one will pay more and by how much?

• A) Simple interest by $50.00
• B) Compound interest by $22.97
• C) Compound interest by $150.75
• D) Compound interest by $150.00
• E) None of these.

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Definitions:

Open Communication

A form of communication where all parties freely express their thoughts and feelings honestly and clearly.

Self-disclosure

The act of revealing personal information about oneself to others, which can help in building trust and relationships.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something.

Self-disclosure

The act of revealing personal information to others, which can enhance intimacy or understanding in relationships.