Your Local Bank Offers 4-Year Certificates of Deposit (CD) at a 12

question 82

Multiple Choice

Your local bank offers 4-year certificates of deposit (CD) at a 12 percent annual nominal interest rate compounded quarterly. Determine how much additional interest you will earn over 4 years on a $10,000 CD that is compounded quarterly compared with one that is compounded annually.

• A) $6,050
• B) $0
• C) $310
• D) $220

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Definitions:

Courteous

Characterized by politeness and gracious good manners.

Dinner Meeting

A formal gathering that combines a meal with a discussion or presentation, often used in business or professional settings.

Business Aspect

Refers to the various elements or facets that make up the operation and strategy of a business.

Clarity of Communication

The ability to express ideas and information in a clear, concise, and understandable manner to the intended audience.