An Investment of $100 Today Is Worth $116

question 20

Multiple Choice

An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%.How much interest is earned in the first year and how much in the second year of this investment?

• A)The interest earned in year one is $8.32 and the interest earned in year two is $8.32.
• B)The interest earned in year one is $8.00 and the interest earned in year two is $8.64.
• C)The interest earned in year one is $8.64 and the interest earned in year two is $8.00.
• D)There is not enough information to solve this problem.

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Definitions:

Psychological Disorders

Mental health conditions marked by significant disturbances in an individual's thoughts, feelings, or behaviors, affecting their ability to function in daily life.

Family Unit

A social group in society typically consisting of parents and their children living together.

Developmental Psychopathology

The study of the origin and evolution of psychological disorders, considering the influence of biological, psychological, and sociocultural factors across the lifespan.

Multiple Factors

A term referring to the variety of elements or conditions that contribute simultaneously to a situation or outcome.