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Use the following graph to answer the next six questions:
-If this is a trading (open) economy,the price of a car will be:
Effective Annualized Rate
The interest rate that is annualized using compounding over a given period, providing a true reflection of the financial cost.
Simple Interest
Interest calculated on the principal portion of a loan or deposit, without compounding over time.
GICs
Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period of time.
Compounded Annually
Interest on an investment calculated once a year, taking into account both the initial principal and the interest from previous periods.
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