Suppose You Earn Annually Compounding Interest of 10% (Per Year)

question 5

Multiple Choice

Suppose you earn annually compounding interest of 10% (per year) on an initial investment of $1,000.Rounded to the nearest 100, what will your balance in 10 years be?

• A)$11,000
• B)$5,200
• C)$2,600
• D)$2,000
• E)$1,600
• F)None of the above

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Definitions:

Nominal Data

Data categorized into discrete groups or categories that cannot be ordered or ranked.

Interval Variable

A type of quantitative variable that exhibits ordered relationships with meaningful, equal distances between measurements but no true zero point.

Nominal Variable

A nominal variable is a type of categorical variable for which there is no natural ordering among the categories.

Nominal Data

Data categorized into discrete groups or categories without any natural order or ranking among them, such as gender or race.