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:

Bankruptcy Abuse Prevention

Part of the legal measures designed to prevent misuse of bankruptcy laws, including provisions to ensure that filings are genuine and to deter fraudulent or reckless bankruptcy claims.

Chapter 7

A provision of the bankruptcy code in the United States that provides for "liquidation," whereby a debtor's non-exempt assets are sold and the proceeds are used to pay creditors.

Automatic Stay

A self-operating postponement of collection proceedings against a debtor who has filed a petition for bankruptcy.

Collection Proceedings

The legal process initiated by creditors to recover money owed by a debtor.