An Amount Is Deposited for Eight Years at 8

question 10

Multiple Choice

An amount is deposited for eight years at 8%. If compounding occurs quarterly, then the table value is found at

• A) 8% for eight periods.
• B) 2% for eight periods.
• C) 8% for 32 periods.
• D) 2% for 32 periods.

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Definitions:

Co-payment

A fixed amount paid by a health insurance plan member for covered services, with the remainder being covered by the insurance.

Deductible

The amount paid out of pocket by the policyholder before an insurance policy begins to pay.

Incentivize

To provide motivation or encouragement through rewards or benefits, aiming to promote certain behaviors or actions.

Insurable Interest

A principle that requires an individual to have a stake in the safety or preservation of the insured object against loss or damage.