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Instructions: Read Each of the Following Essay Introductions

question 247

Multiple Choice

Instructions: Read each of the following essay introductions. Then select the letter of the method the writer used to begin the composition. The essay below begins with a(n) Mario Conley joined a gang when he was just 12 years old. Drawn to the power, money, respect, and loyal friends that the gang members in his neighborhood seemed to have, Mario soon became one of them. Soon afterward, though, he learned about the dark side of gang membership. His fellow gang members pressured him to skip school, drink alcohol, do drugs, steal, lie, and fight. By the time he was sixteen, he had already been arrested ten times for drug crimes, assault, and vandalism. By age 18, he was serving a 20-year-sentence for shooting and killing a rival gang member. Mario s experience is typical of young gang members, who almost always wind up dead or in prison. Today, still behind bars, Mario advises others to avoid being seduced by the gang life. Joining a gang is one of the worst mistakes a young person can make.

Definitions:

Nominal Rates

The stated interest rate on a loan or investment, not accounting for inflation or compounding effects.

Real Rates

Real rates refer to the interest rates adjusted for inflation, representing the true cost of borrowing or the real yield on an investment.

Coupon Rates

The interest rate stated on a bond when issued, which represents the annual interest payment compared to the bond's face value.

Effective Rates

Interest rates adjusted for the compounding period, more accurately reflecting the true cost or yield of a financial product than the nominal rate.