How Much More Interest Will Be Earned on a $5000

question 20

Multiple Choice

How much more interest will be earned on a $5000 investment earning 6 percent compounded monthly over another investment paying the same rate but compounded annually for 10 years? (round your answer)

• A)$1020
• B)$120
• C)$102
• D)$98

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Definitions:

Attention

The brain's method of zeroing in on a certain feature of the surroundings and neglecting other information.

Cognitive Revolution

A period in the 20th century that marked a significant change in the way psychologists understood and studied the mind, emphasizing internal mental processes.

Mental Processes

Internal cognitive operations that include thinking, reasoning, problem-solving, and remembering that enable individuals to understand and interact with the world.

1960s

A decade characterized by significant social, political, and cultural changes worldwide.