Use the Combinations Formula

question 95

Multiple Choice

Use the Combinations Formula
-11C3

• A) 165
• B) 6,652,800
• C) 13,305,600
• D) 990

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Definitions:

Nominal Rate

The stated interest rate of a financial product, not accounting for inflation or compounding effects.

Compounded Quarterly

Refers to the method of applying interest to an existing principal amount and any accrued interest every quarter or three months.

Effective Yield

A measure of the return on an investment, taking into account the effect of compounding interest.

Simple Annualized

A method of calculating the return on an investment by annualizing its simple interest without accounting for compounding.