Andy Deposited $3,000 This Morning into an Account That Pays

question 54

Multiple Choice

Andy deposited $3,000 this morning into an account that pays 5 percent interest,compounded annually.Barb also deposited $3,000 this morning into an account that pays 5 percent interest,compounded annually.Andy will withdraw his interest earnings and spend it as soon as possible.Barb will reinvest her interest earnings into her account.Given this,which one of the following statements is true?

• A)Barb will earn more interest the first year than Andy will.
• B)Andy will earn more interest in year three than Barb will.
• C)Barb will earn interest on interest.
• D)After five years, Andy and Barb will both have earned the same amount of interest.
• E)Andy will earn compound interest.

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Definitions:

Collaborates

The act of working jointly with others or together especially in an intellectual endeavor.

Expatriate

An individual who lives outside their native country, often for work reasons, embracing a new cultural environment while maintaining their original nationality.

Global Leadership

The ability to influence and guide individuals, teams, or organizations across cultural and geographic boundaries, often involving diverse and complex global issues.

Customer-Facing

Pertains to activities, roles, or functions in a business that involve direct interaction with the customers.