The "Front Page of the Newspaper Test

question 103

Multiple Choice

The "front page of the newspaper test":

• A)was developed by Laura Nash.
• B)is the same as the Wall Street Journal test.
• C)was developed by Blanchard/Peale.
• D)uses the perspective of an objective reporter.

---

Definitions:

Compounded Annually

A method where interest is added to the principal balance once a year, affecting the total interest earned or paid.

Compounded Monthly

A method of calculating interest where interest earned is added to the principal monthly, so each subsequent interest calculation is on an increased amount.

Monthly Compounding

A method of calculating interest whereby the interest is calculated and added to the principal amount at the end of each month.

Compounded Monthly

A term used in finance to describe a situation where interest is added to the principal balance of an investment, loan, etc., on a monthly basis, and future interest is then earned on the resulting new balance.