Investment a Pays 8 Percent Simple Interest for 10 Years

question 41

Multiple Choice

Investment A pays 8 percent simple interest for 10 years. Investment B pays 7.75 percent compound interest for 10 years. Both require an initial $10,000 investment. The future value of A minus the future value of B is equal to ________ (to the nearest penny) .

• A)$2,500.00
• B)−$2,500.00
• C)$1,643.32
• D)$3,094.67
• E)−$3,094.67

---

Definitions:

Power Balance

The distribution of power among countries or within regions to prevent dominance by any single entity and ensure mutual coexistence and stability.

Royal Colony

A type of colonial administration of the British Empire, governed directly by the Crown through a royal governor appointed by the monarch.

Tobacco

A plant that contains nicotine and is cultivated for its leaves, which are processed and used primarily for smoking in cigarettes, cigars, or pipes.

Survival And Prosperity

The capacity of individuals or groups to maintain their life and health while also achieving economic success and growth.