Phillippe Invested $1,000 Ten Years Ago and Expected to Have

question 58

Multiple Choice

Phillippe invested $1,000 ten years ago and expected to have $1,800 today He has neither added nor withdrawn any money since his initial investment. All interest was reinvested and compounded annually. As it turns out, he only has $1,680 in his account today. Which one of the following must be true?

• A) He earned simple interest rather than compound interest.
• B) He earned a lower interest rate than he expected.
• C) He did not earn any interest on interest as he expected.
• D) He ignored the Rule of 72 which caused his account to decrease in value.
• E) The future value interest factor turned out to be higher than he expected.

Assess how changes in insurance coverage (e.g., removing dependents) impact overall premium costs.

Understand the structure and computation of health insurance premiums and employee contributions within a company plan.

Calculate the total cost of health insurance for a company based on employee participation and coverage levels.

Analyze individual employee and dependent medical expenses against their coverage to compute out-of-pocket costs.

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Definitions:

Jewish Child

A child belonging to the Jewish community, which may involve cultural, religious, and social aspects unique to the Jewish heritage and traditions.

Eastern-European Background

Refers to the heritage or origin of individuals or their ancestors from Eastern European countries.

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A medical procedure used during pregnancy to sample the amniotic fluid surrounding the fetus, primarily to test for genetic conditions or abnormalities.

Miscarriages

The spontaneous loss of a pregnancy before the fetus can survive outside the womb, typically occurring within the first trimester.