One Number Has Three Significant Figures and Another Number Has

question 12

Multiple Choice

One number has three significant figures and another number has four significant figures. If these numbers are added, subtracted, multiplied, or divided, which operation can produce the greatest number of significant figures?

• A) the addition
• B) the subtraction
• C) the multiplication
• D) the division
• E) All the operations result in the same number of significant figures.

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Definitions:

Present Value Factor

A multiplier used to determine the present value of a future cash flow, taking into account a specific discount rate.

Annuity

An investment vehicle providing a constant flow of payments to the owner, usually utilised as a source of income for retired people.

Net Cash Flow

The variance between the cash coming into and going out of a business within a set timeframe.

Compound Interest

The calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.