Lesson Example Discussion Quiz: Class Homework |
Step-4 |
Title: Two-Variable Data |
Grade: 1300-a Lesson: S4-L2 |
Explanation: Hello Students, time to practice and review the steps for the problem. |
Lesson Steps
Step | Type | Explanation | Answer |
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1 |
Problem |
Two investments were made as shown in the table. |
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2 |
Step |
Identify the Interest type for Account A : |
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3 |
Step |
Identify the Interest type for Account B : |
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4 |
Formula: |
Formula for Interest: |
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5 |
Step |
Impact on Future Earnings for Account A: |
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6 |
Step |
Impact on Future Earnings for Account B : |
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7 |
Step |
Long-term Growth: |
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8 |
Step |
Example with Calculations (Assuming a one-year investment period): Account B: |
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9 |
Step |
Therefore, neither the statement that Account A always earns less money per year than Account B nor the statement that Account A earns less money than Account B at first can be true. |
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10 |
Choice.A |
This is true because Account A benefits from compounding interest. Each year, the interest is calculated not just on the initial investment, but also on the accumulated interest from previous years. This snowball effect makes Account A’s earnings grow faster than Account B’s flat, simple interest |
Account A always earns more money per year than Account B |
11 |
Choice.B |
This is incorrect. Even though Account B starts with a higher investment, compounding interest in Account A will eventually lead to higher annual earnings |
Account A always earns less money per year than Account B |
12 |
Choice.C |
This is not true. Due to compounding, Account A’s earnings will continue to grow each year, not decrease |
Account A earns more money per year than Account B at first but eventually earns less money per year |
13 |
Choice.D |
This could be tempting, but remember that compounding starts working immediately. |
Account A earns less money per year than Account B at first but eventually earns more money per year |
14 |
Answer |
Option |
A |
15 |
Sumup |
Can you summarize what you’ve understood in the above steps? |
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