What Nominal Rate of Interest-Compounded Quarterly Will Have to Be

question 74

Multiple Choice

What nominal rate of interest-compounded quarterly will have to be earned on a savings account for it to grow from $1525 to $1955 over a period of 21 months?

• A) 14.45%
• B) 15.45%
• C) 12.45%
• D) 3.61%
• E) 10.45%

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Definitions:

Personality Problems

Issues or disorders that influence an individual's behavior, thinking patterns, and interactions with others, often leading to social difficulties.

Cognitive Adaptation

The mental process of adjusting thinking to incorporate new information, concepts, or experiences through mechanisms of assimilation and accommodation, facilitating learning and understanding of the world.

Piaget's Theory

A theory of cognitive development that outlines how children progress through a series of stages, each marked by unique intellectual challenges and achievements.

Equilibrium

A state of balance or stability, often referring to the body's ability to maintain its center of gravity, or in psychology, a state of mental or emotional balance.