Scott Has $4,800 That He Wants to Invest for 3

question 49

Multiple Choice

Scott has $4,800 that he wants to invest for 3 years. He can invest this amount at his credit union and earn 4 percent simple interest. Or, he can open an account at Trust Bank and earn 3.65 percent interest, compounded annually. If he decides to invest at Trust Bank for 3 years, he will:

• A) earn $15.02 more than if he had invested with his credit union.
• B) earn $30.98 less than if he had invested with his credit union.
• C) earn the same amount as if he had invested with the credit union.
• D) have a total balance of $4,992 in his account after one year.
• E) have a total balance of $4,876 in his account after one year.

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Definitions:

Proving Causation

The process of demonstrating that one event directly results in the occurrence of another event.

Many Labs Approach

A methodology in psychological research where multiple laboratories replicate a study to test its reliability across different contexts.

Replicate

When the same or a very similar study is conducted again, the results are similar.

Neuroticism

A characteristic of personality marked by feelings of emotional unpredictability, anxiousness, changeable moods, apprehension, and jealousy.