Tim invested $1,000 in a mutual fund paying 8% per year.John invested $500 in the same fund.If both Tim and John keep their money invested for the same period of time,Tim will end up with twice as much money as John.

Question

Quizplus · Accepted Answer

After the same period of time, Tim's investment will have grown to $1,000 * 1.08 = $1,080. Then, his total balance will be $1,080 + $1,000 = $2,080.
John's investment will have grown to $500 * 1.08 = $540.
Since $2,080 is twice as much as $540, the statement is true.

Tim Invested $1,000 in a Mutual Fund Paying 8% Per