Case-Based Critical Thinking Questions Maureen Is Planning a Cruise for Her

question 55

Multiple Choice

Case-Based Critical Thinking Questions Maureen is planning a cruise for her family's upcoming reunion. She wants to e-mail images from the cruise ship to her siblings, who live in other parts of the country. She decides to use PowerPoint 2010 to create a quick presentation for them. Maureen is ready to e-mail her presentation. She can ____.

• A) use the Microsoft Outlook program to send her presentation
• B) send the presentation using Outlook from within PowerPoint
• C) either a. or b.
• D) neither a. nor b.

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Definitions:

Nominal Interest

The rate of interest before adjustments for inflation, as opposed to real interest rates which are adjusted.

Effective Rate

The actual annual interest rate that is earned or paid on an investment, taking compounding into account.

Compounding Interval

The frequency with which interest is added to the principal balance of an investment.

Monthly Compounded

Monthly compounded refers to the process of calculating interest on a principal amount where the interest is added to the principal at the end of each month, thereby earning interest on interest in subsequent months.