Lester Had $6,270 in His Savings Account at the Beginning

question 43

Multiple Choice

Lester had $6,270 in his savings account at the beginning of this year.This amount includes both the $6,000 he originally invested at the beginning of last year plus the $270 he earned in interest last year.This year, Lester earned a total of $282.15 in interest even though the interest rate on the account remained constant.This $282.15 is best described as:

• A)simple interest.
• B)interest on interest.
• C)discounted interest.
• D)complex interest.
• E)compound interest.

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Definitions:

Survey

A research method used to collect data from a predefined group of respondents to gain information and insights on various topics of interest.

Average Age

The sum of the ages of all individuals in a group divided by the number of individuals, used to represent the midpoint of age in the group.

Random

Lacking pattern or predictability in events, often used to describe a method for selecting samples in research to avoid bias.

Population Parameter

A numerical value that summarizes a characteristic of the entire population.