Question

Mr. Simpson deposits his money in a savings account at the Springfield Bank. Would he earn more money with simple interest or with compound interest?
Responses
A Simple interest earns more because simple interest always has a higher rate.Simple interest earns more because simple interest always has a higher rate.
B He would earn the same amount, as these are different terms for the same thing.He would earn the same amount, as these are different terms for the same thing.
C Simple interest earns more because the interest is determined annually on the original amount.Simple interest earns more because the interest is determined annually on the original amount.
D Compound interest earns more because the amount on which interest is paid increases over time.
Answer
Homer wants to borrow money from the Springfield Bank to buy a new trampoline. The bank requires collateral for a loan. What is collateral?
Responses
A a signed statement that the loan will be repaida signed statement that the loan will be repaid
B an increased interest rate for a high risk loanan increased interest rate for a high risk loan
C something of value which the bank will receive if the loan is not repaidsomething of value which the bank will receive if the loan is not repaid
D money deposited in the bank which is greater than the amount of the loan
Answer
Which of these is NOT an example of a fixed expense in a budget?
Responses
A car paymentcar payment
B mortgage paymentmortgage payment
C car insurance paymentcar insurance payment
D expenses for a birthday party
Answered by GPT 3.5
D Compound interest earns more because the amount on which interest is paid increases over time.
Answered by GPT 3.5
C something of value which the bank will receive if the loan is not repaid
Answered by GPT 3.5
D expenses for a birthday party