The Sum of Two Numbers Is Twenty

question 2

Multiple Choice

The sum of two numbers is twenty. Three times the smaller number is equal to two times the larger number. Find the smaller number.

• A) 3
• B) 11
• C) 8
• D) 7
• E) 17

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Definitions:

Effective Annual Rate

The annual return on an investment or loan taking compounding into account, expressed as a percentage.

Compounded Annually

This is an interest calculation method where interest is added to the principal once a year.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effects of compounding.

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal sum twice a year, causing the interest to earn interest.