Examlex

Solved

Sarah Is a 27-Year-Old Graduate Student Pursuing a Master's Degree

question 86

Multiple Choice

Sarah is a 27-year-old graduate student pursuing a master's degree in political science.She has never purchased health insurance for herself and,frankly,would prefer not to,given that she has enjoyed good health and would like to avoid paying insurance premiums.If she chose not to purchase insurance in 2014,what would be the likely consequence?


Definitions:

Effective Rate

The actual interest rate an individual pays on a loan or earns on an investment, taking into account the effect of compounding.

Quarterly Compounding

A technique in which interest is computed and then compounded to the main amount quarterly.

Nominal Rate

The stated interest rate of a bond or loan, not adjusting for inflation or the compounding of interest.

Monthly Compounding

The monthly interest computation strategy that involves both the starting principal amount and the earned interest from earlier times.

Related Questions