Explain How Significant Figures Are Handled in Calculations

question 39

Essay

Explain how significant figures are handled in calculations.

---

Definitions:

Loan

A loan is a sum of money borrowed that is expected to be paid back with interest.

Compounded Monthly

Describes interest on an investment or loan that is calculated and added to the principal balance monthly, allowing for the interest to earn interest.

Guaranteed Investment Certificate

A secure investment that guarantees to return the principal amount along with a fixed rate of interest at the end of the investment term.

Interest

The cost of borrowing money, calculated as a percentage of the total amount borrowed.