Roxanne and Eileen Live in an Apartment Building with a Laundry

question 64

Multiple Choice

Roxanne and Eileen live in an apartment building with a laundry room in the basement. Roxanne does her laundry at home, spending $4 and 5 hours per week. Eileen sends her laundry out, spending $20 and 15 minutes per week transporting the laundry. On the basis of the information given, which one of the following must be true?

• A) Roxanne earns more income than Eileen.
• B) Eileen earns more total income than Roxanne.
• C) Eileen enjoys doing laundry; Roxanne does not.
• D) Eileen has less laundry than Roxanne.
• E) Eileen and Roxanne attach different utilities to time spent doing laundry.

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Definitions:

Maturity

The due date on which a financial obligation must be repaid in full.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving regular interest payments and the return of principal at maturity.

Equity Securities

Financial instruments that represent ownership interest in a company, such as common stock, and typically provide voting rights and potential dividends.

Creditor Relationship

The financial relationship that exists between a borrower or debtor and a lender, where the lender provides a loan or credit to the borrower.