A Twenty-Year Note for $1000

question 67

Multiple Choice

A twenty-year note for $1000.00 bearing interest at 9% compounded monthly is discounted at 5% compounded quarterly four years and six months before maturity. Find the proceeds of the note.

• A) $6009.15
• B) $4805.10
• C) $133.07
• D) $4800.65
• E) $4741.93

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Definitions:

Scattergraph Method

A graphical technique used to identify the relationship between two variables, often used in cost analysis to distinguish between fixed and variable costs.

Cost Estimates

Approximations of the cost to complete a project, manufacture a product, or provide a service, based on available information.

Regression Line

A statistical tool used to describe the relationship between a dependent variable and one or more independent variables, often represented as a straight line in linear regression.

Scattergraph

A graphical representation that displays the relationship between two variables, often used in statistics and data analysis.