Decide Whether the Statement Makes Sense

question 131

Multiple Choice

Decide whether the statement makes sense. Explain your reasoning.
-In 2013, the United States publicly held debt was $17 trillion. Use the loan payment formula to determine the annual payments needed to pay this debt off in 10 years. Assume an annual interest
Rate of 3%.

• A)$1993 billion
• B)$1987 billion
• C)$2014 billion
• D)$2002 billion

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Definitions:

Weighted Moving Average

A calculation that averages a set of numbers, giving different weights to each value, commonly used in finance and forecasting.

Waffle Sales

The revenue or quantity sold from the transaction of waffles in a given period, often used to gauge business performance in the food industry.

Mean Absolute Deviation

A statistical measure that represents the average absolute difference between each data point and the mean of the data set, indicating variability.

Forecast Errors

The difference between the actual outcomes and the predicted outcomes in forecasting, indicating the accuracy of the forecasts.