When Multiplying Fractions, You

question 33

Multiple Choice

When multiplying fractions, you:

• A) add the numerators and multiply the denominators
• B) add the denominators and multiply the numerators
• C) multiply the each numerator by the opposite denominator
• D) multiply the numerators straight across and the denominators straight across

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the Federal Reserve's discount window.

Future Cash Flows

Future cash flows refer to the projected financial gains or expenses a business expects to receive or pay out over a specific period in the future.

Discounted Payback Period

The time required to recover the cost of an investment while considering the time value of money.

Initial Investment

The amount of money used to start an investment project or venture.