If a Bank Compounds Interest Quarterly for 10 Years, How

question 15

Multiple Choice

If a bank compounds interest quarterly for 10 years, how many total compound periods are there?

• A)There are 60 total compound periods.
• B)There are 5 total compound periods.
• C)There are 20 total compound periods.
• D)There are 40 total compound periods.

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Definitions:

Economic Resources

The inputs used to produce goods and services, including natural resources, labor, and capital.

Consumption

The use of goods and services by households, constituting one of the primary components of GDP.

Price Mechanism

The manner in which the prices of goods or services affect the supply and demand of goods and services.

Capitalist Economies

Economic systems where capital assets are privately owned, and the production and distribution of goods and services are determined by competition in a free market.