How Much Interest Can Be Accumulated During One Year on a $1,000

question 98

Multiple Choice

How much interest can be accumulated during one year on a $1,000 deposit paying continuously compounded interest at an APR of 10%?

• A) $100.00
• B) $105.17
• C) $110.50
• D)$115.70

Understand purchasing-power parity and how it affects international price comparisons.

Analyze the factors influencing a country's export, import, and trade balance.

Calculate and understand the implications of net exports and net capital outflow being equal.

Understand and apply the concept of real versus nominal exchange rates in international economic analysis.

---

Definitions:

≠ Symbol

A mathematical symbol denoting inequality, specifically that two values are not equal.

Null Hypothesis

A statistical premise asserting the absence of a relationship or impact between variables, tested to determine if an observed association is likely due to chance.

Directional

Refers to hypotheses in research that predict not only the existence of a relationship between variables but the direction of that relationship as well.

Non-directional

A type of hypothesis that does not specify the direction of the expected relationship between variables.