Compound Interest Is Best Defined as the Interest Earned

question 194

Multiple Choice

Compound interest is best defined as the interest earned:

• A) On prior year's interest which was reinvested.
• B) On a simple basis for multiple years.
• C) On the initial investment for a stated number of periods.
• D) On both the interest reinvested from prior periods and the initial investment.
• E) For the first year multiplied by the number of years in the investment period.

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Definitions:

Extinction

The gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that automatically triggers a reflexive response without any prior learning or conditioning.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.