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Bart Uses an Old Cigarette Lighter That Has Become Unreliable

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Bart uses an old cigarette lighter that has become unreliable.It usually takes from one to 10 flicks to make it work.When the lighter is out of fluid,it will not work at all.By the time that Bart figures out the problem,he has tried flicking it 15 to 20 times.This situation illustrates the principle that


Definitions:

Compounded Semi-annually

A method of calculating interest where the interest is added to the principal amount twice a year and then interest is subsequently earned on the new principal.

Amortization Period

The total length of time over which an individual loan or debt is scheduled to be paid off.

Compounded Semi-annually

Compounded semi-annually refers to the calculation of interest where the principal amount is credited with interest twice a year.

Amortization Period

The total time period over which a loan or mortgage is scheduled to be paid off through regular payments.

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