Because of the Compounding Effect, a $7,500 Loan at 12

question 289

True/False

Because of the compounding effect, a $7,500 loan at 12% interest can grow to $23,293.86 after 10 years.

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Definitions:

Basicity

A measure of the ability of a substance to accept hydrogen ions (protons), often used to describe the strength of bases.

Formic Acid

The simplest carboxylic acid, with the formula HCOOH, used industrially and as an antiseptic.

Ka

An equilibrium constant for the dissociation of a weak acid into its proton and conjugate base in solution; a measure of acid strength.

pKa

A measure of the acidity of a hydrogen atom in a molecule, indicating the tendency of the molecule to donate a proton.