Compound Interest

question 271

Multiple Choice

Compound interest

• A) describes how quickly an interest-bearing asset increases in value.
• B) measures the rate of return of a portfolio of stocks and bonds.
• C) measures the after-tax, inflation-adjusted rate of interest.
• D) refers to the multiple rates of interest of various types of bonds in a portfolio.

---

Definitions:

Milliliters

A unit of volume in the metric system, equal to one-thousandth of a liter.

Liters

A metric unit of volume equal to one cubic decimeter, commonly used to measure fluids.

Significant Figures

The digits in a numerical value that contribute to its measurement accuracy, including all certain digits and the first uncertain digit.