In the Quotient $\frac { A } { B \cdot C }$

question 29

Multiple Choice

In the quotient $\frac { A } { B \cdot C }$ , A has 5 significant figures, B has 2 significant figures, and C has 3 significant figures. How many significant figures does the quotient have?

• A)2
• B)3
• C)4
• D)0
• E)1

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Definitions:

Effective Interest Method

A method of calculating the interest rate on a bond that factors in the actual amount paid over the life of the bond, including any fees or costs.

Amortization Table

A table that outlines each periodic payment on a loan over time, breaking down the amounts that go towards the principal and interest.

Semiannual Payment

A payment made twice a year, often related to loans, insurance premiums, or investments.

Collateral Bonds

Bonds that are secured by a specific asset or form of collateral, offering more security to bondholders.