If the Value of the Principal Today Is $12,000 and the Interest

question 21

Multiple Choice

If the value of the principal today is $12,000 and the interest rate is 10.5%,what is the total compounding contribution at the end of two years?

• A)$125.25
• B)$100.56
• C)$132.30
• D)$450.50
• E)None of the above.

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Definitions:

Third-variable Problem

An issue in research where an unmeasured variable could be influencing the relationship between two other variables.

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