Based on What You Have Read in This Chapter, You

question 45

Multiple Choice

Based on what you have read in this chapter, you would correctly conclude that

• A) the way we think and act has no effect on how society operates.
• B) human beings are defined and predictable, preventing them from changing society.
• C) human beings have the capacity to overcome even great challenges.
• D) once a human being becomes an inmate, they can never be reintroduced to society.

---

Definitions:

Rates of Return

The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.

EAR

Effective Annual Rate, a measure of interest that takes into account the compounding of interest over time.

Borrower

An individual, company, or entity that receives funds from another party with the agreement to repay the principal amount along with any agreed-upon interest.

Annualized (Geometric)

Annualized (geometric) refers to the method of calculating an average rate of return that accounts for the compounding effect over a period.