Jamie Deposits $1000 into an Account Paying 6 Per Cent

question 22

Multiple Choice

Jamie deposits $1000 into an account paying 6 per cent interest,compounded annually.
At the same time,Amy deposits $1000 into an account paying 3 per cent interest,compounded annually.Over a five-year period:

• A)both Jamie and Amy will earn the same amount of interest
• B)Jamie will earn exactly twice the amount of interest that Amy earns
• C)Amy will earn exactly twice the amount of interest that Jamie earns
• D)Jamie will earn somewhere between one and two times the amount of interest that Amy earns
• E)Jamie will earn more than twice the amount of interest that Amy earns

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Definitions:

Reorder Point

The inventory level at which an order should be placed to replenish stock before it runs out, based on lead time and demand.

Average Usage

The mean amount of a resource or service consumed over a specific period, used for planning and analysis purposes.

Safety Stock

Inventory kept on hand to protect against stockouts, typically to address unpredictable demand or uncertainties in the supply chain.

Lead Time

The total time it takes for a process to be completed from the moment it is initiated until its conclusion, often critical in supply chain management.