Sue and Neal Are Twins

question 1

Multiple Choice

Sue and Neal are twins.Sue invests $5,000 at 7 percent when she is 25 years old.Neal invests $5,000 at 7 percent when he is 30 years old.Both investments compound interest annually.Both Sue and Neal retire at age 60.Which one of the following statements is correct assuming that neither Sue nor Neal has withdrawn any money from their accounts?

• A)Sue will have less money when she retires than Neal.
• B)Neal will earn more interest on interest than Sue.
• C)Neal will earn more compound interest than Sue.
• D)If both Sue and Neal wait to age 70 to retire, then they will have equal amounts of savings.
• E)Sue will have more money than Neal as long as they retire at the same time.

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Definitions:

Efficiency

Refers to the ability to achieve a desired result without wasted energy or effort.

Contingency Design

The planning and creation of systems, processes, or structures that are adaptable to varying conditions and unforeseen situations.

Systematic Experimentation

Systematic Experimentation is an organized method of investigating variables and testing hypotheses in a controlled environment to gain insights or optimize outcomes.

PDCA Cycle

A four-step management method used in business for the control and continuous improvement of processes and products; it stands for Plan-Do-Check-Act.