Today, stacy is investing $18,000 at 6.72 percent, compounded annually, for 5 years. how much additional income could she earn if she had invested this amount at 7.15 percent, compounded annually?

If x is the interest rate, we have that after 1 year Stacy gets a return of 18000*(1+x).After another year, this new sum needs to be multiplied again by (1+x). Thus, inductively one sees that after n years of annual compounding, Stacy will have returns 18000*[(1+x)^n] and the general formula for any initial capital C is: C*[(1+x)^n]. In the first case the interest rate is 6,72%, so x=0,0672 and in the second case x=0,0715. Substituting these numbers (and n=5 years) we get that in the first case (6,72%) Stacy gets 24917,33$ and in the second case (7,15%) she gets 25423,39$. The difference of these sums is the income that Stacy could have earned. This difference is equal to 506,06$

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not.