Two Cars Start Moving from the Same Point

question 35

Multiple Choice

Two cars start moving from the same point. One travels south at mi/h and the other travels west at mi/h. At what rate is the distance between the cars increasing 2 hours later? Round the result to the nearest hundredth.

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Definitions:

Zero-coupon Bonds

Bonds that are issued at a discount to their face value and do not pay interest during their life but are redeemed at full face value at maturity.

Coupon Rate

Yearly rate of interest on a bond, indicated as a percentage of its face value.

Maturity Bond

A fixed-income security that repays the principal along with interest at the end of a specified period.

Forward Interest Rate

A future rate agreed upon for a financial transaction or investment that will be carried out at a later date.