The Amount of Interest Is Determined by Multiplying the Amount

question 65

Multiple Choice

The amount of interest is determined by multiplying the amount in savings by the:

• A)annual interest rate.
• B)time period.
• C)number of months in a year.
• D)time period and number of months.
• E)annual interest rate and the time period.

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Definitions:

Standard Deviations

A statistical measure that quantifies the dispersion or variance of a set of data points from their average, widely used in the finance sector to gauge the volatility of investment returns.

Systematic Risk

The overall market risk that cannot be diversified away by holding a wide range of asset classes.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Nondiversifiable Risk

Risk factors common to the whole economy; also called market risk or systematic risk.