Solve the Problem. -A City Is Growing at the Rate of 0.3% Annually

question 105

Multiple Choice

Solve the problem.
-A city is growing at the rate of 0.3% annually. If there were 4,466,000 residents in the city in 1,995, find howmany (to the nearest ten-thousand) were living in that city in 2000. Use

• A)4,530,000
• B)180,000
• C)12,060,000
• D)4,560,000

---

Definitions:

Nominal Rate

The stated interest rate of a bond or loan, not accounting for inflation or compounding effects, also known as the annual percentage rate (APR).

Compounded Monthly

An interest calculation method where interest earned is added to the principal each month, affecting subsequent interest calculations.

Effective Rate

The actual annual interest rate that accounts for compounding over a given period, providing a true reflection of the financial cost or benefit.

Nominal Rate

The stated interest rate of a financial instrument, without adjustment for inflation or compounding frequencies.