-Refer to Table 6

question 168

Multiple Choice

-Refer to Table 6.12. If 1998 is the base year, the inflation rate between 1998 and 1999 is _______%, and the inflation rate between 1998 and 2000 is _______%.

• A) 24.1; 8.4
• B) 20.5; 10.5
• C) 18.3; 20
• D) 12.7; 5.9

---

Definitions:

Payments

Amounts of money paid by one party to another in exchange for goods, services, or repayment of a loan.

Compounded Semi-Annually

The method of calculating interest where the accrued interest is added to the principal sum every six months.

Lump Payment

A single, large payment made at once, as opposed to smaller, periodic payments.

Compounded Semi-Annually

This is the process where interest is added to the principal sum of a loan or deposit twice a year, resulting in interest being earned on interest from that point on.