Use the Compound Interest Formula for Compounding More Than Once

question 18

Multiple Choice

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period.
-$10,000 deposit at an APR of 4% with semiannual compounding for 12 years

• A)$14,800.00
• B)$16,010.32
• C)$12,682.42
• D)$16,084.37

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Definitions:

Standard Deviation

An indicator that quantifies the spread or diversity among data set values, showing the degree to which these values deviate from the average.

Mean

The arithmetic average of a set of numbers, calculated by adding up all the values and dividing by the number of values.

Pounds

A unit of weight commonly used in the United States and the United Kingdom, equivalent to 0.453592 kilograms.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are around the mean.