Sam Wants to Invest $5,000 for 5 Years

question 46

Multiple Choice

Sam wants to invest $5,000 for 5 years.Which one of the following rates will provide him with the largest future value?

• A)5 percent simple interest
• B)5 percent interest, compounded annually
• C)6 percent interest, compounded annually
• D)7 percent simple interest
• E)7 percent interest, compounded annually

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Definitions:

Sample Size

The total count of individual samples or observations used within a research study or experiment, critical for the reliability of results.

Control Chart

A graph used to study how a process changes over time, showing plotted values of some statistical measure against time to identify outliers or trends.

Production Process

The sequence of operations or steps taken to convert raw materials into finished goods or services.

Fixed Sample Size

A specific number of observations or data points that are predetermined before conducting an experiment or study.