Investment a Pays 8 Percent Simple Interest for 10 Years

question 57

Multiple Choice

Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75 percent compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to ______________ (to the nearest penny) .

• A)-$3,094.67
• B)$3,094.67
• C)$1,643.32
• D)$2,500.00
• E)-$2,500.00

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Definitions:

Secondary Growth

An increase in the girth of a plant due to the activity of the vascular cambium and cork cambium; secondary growth results in the production of secondary tissues (i.e., wood and bark).

Horizontal Growth

Expansion or growth of an entity (such as a company or plant) outward rather than upward, which can involve increasing product lines or locations.

Radial Growth

The pattern of growth that expands outward in all directions, commonly observed in fungi, certain plants, and some animals like jellyfish.

Cork Cambium

A lateral meristem that produces cork cells and cork parenchyma; cork cambium and the tissues it produces make up the periderm (outer bark) of a woody plant. Compare with vascular cambium.