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Tim Is Studying for a Test

question 65

Multiple Choice

Tim is studying for a test.After seven consecutive hours of studying,he finds he can remember what he just finished studying,but he can no longer remember what he studied five or six hours ago.Tim's memory problems are BEST explained by __________.


Definitions:

Effective Rate

The actual interest rate of an investment or loan when compounding interest is taken into account, differing from the nominal rate by including the effects of compounding.

Financial Position

A snapshot of the resources, obligations, and the net worth of an individual or organization at a specific point in time.

Nominal Rate

The stated interest rate of a loan or investment, not taking into account the effect of compounding.

Semiannually

Referring to an occurrence or event happening twice a year.

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