Find the Hill-Huntington Cutoff Point for Rounding Up a Modified

question 23

Multiple Choice

Find the Hill-Huntington cutoff point for rounding up a modified quota of 5.671.

• A)5.526
• B)5.477
• C)5.368
• D)5.553

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Definitions:

Rule Of 72

A simple formula used to estimate the number of years required to double the invested money at a given annual rate of return, by dividing 72 by the expected rate of interest.

Compounding

Compounding refers to the process by which the value of an investment increases because the earnings on an investment, both capital gains, and interest, earn interest as time passes.

Compounded Monthly

A process where interest earned on an investment is calculated and added to the principal each month, thereby earning interest in subsequent months.

Opportunity Rate

The return of a foregone option when another investment is chosen, embodying the concept of opportunity cost.