Interest Is Compounded Annually

question 31

Multiple Choice

Interest is compounded annually. What is the total amount of interest on a $7,000 note payable at the end of five years at 8%?

• A) $3,000
• B) $3,285
• C) $7,000
• D) $3,791

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Definitions:

Object Relations

A theory in psychoanalysis focusing on relationships and the impact of early family interactions on personality development.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unipolar Depression

A mood disorder featuring consistent low mood, lack of interest in activities, and other depressive symptoms without episodes of mania.

Rapid Cycling

In the context of bipolar disorder, a pattern of four or more mood episode changes within a year.