To Decrease the Amount Required Today to Fund a $10,000

question 21

Multiple Choice

To decrease the amount required today to fund a $10,000 debt due two years from now, you could _____ on your savings.

• A) Increase the rate of interest earned
• B) Decrease the number of compounding periods per year
• C) Earn simple interest rather than compound interest
• D) Both decrease the rate of interest and the number of compounding periods per year
• E) Either decrease the rate of interest or decrease the number of compounding periods per year

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Definitions:

Comprehensive Environmental Response

A component of U.S. legislation aimed at the cleanup of sites contaminated with hazardous substances and pollutants.

Hazardous Waste Materials

Dangerous substances that pose substantial or potential threats to public health or the environment.

Resource Conservation

Practices and strategies aimed at protecting, preserving, and sustainably managing natural resources.

Recovery Act

A legislative package aimed at stimulating economic recovery and assisting those affected by a financial downturn.