Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates for below questions:

Katherine deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 6.6%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years?

a. $929.00
b. $429.00
c. $535.18
d. $1,147.66

If Katherine's savings account earns 6.6% compounded annually, all other things being equal, how much money will Katherine have in her account in 13 years?

a. $929.00
b. $533.00
c. $1,147.66
d. $984.69

Suppose Katherine had deposited $500 in a savings account at a second bank at the same time. The second bank also pays a nominal interest rate of 6.6% but with quarterly compounding. Keeping everything else constant, how much money will Katherine have in her account at this bank in 13 years?

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups. b. we cannot infer anything from these data since the distribution of salaries is likely right skewed. c. you cannot draw any valid conclusions because the sample sizes are different. d. more students should complete internships because having an internship produces a higher salary.