Assume a 1-Year Loan for $6,000 Has an Interest Rate

question 72

Multiple Choice

Assume a 1-year loan for $6,000 has an interest rate of 4.5 percent, compounded annually. How much additional interest would be charged if the rate had compounded continuously rather than annually? 

• A) $5.84 
• B) $6.17 
• C) $6.10 
• D) $5.93 
• E) $6.28 

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Definitions:

Psychoanalysis

A method of therapy and theory of personality developed by Sigmund Freud that emphasizes unconscious motives and conflicts.

Conscious Awareness

The state of being awake and aware of one's surroundings, thoughts, and feelings.

Unconscious

A part of the mind that stores feelings, thoughts, urges, and memories that are outside of our conscious awareness.

Forensic Psychologists

Professionals specialized in applying psychological knowledge to legal questions and issues, including criminal profiling, competency evaluations, and assessments of witness credibility.