What Answer Should Be Reported, with the Correct Number of Significant

question 154

Multiple Choice

What answer should be reported, with the correct number of significant figures, for the following calculation? 3.000 × 10⁵ + 614283

• A) 914283
• B) 9.1428 × 10⁵
• C) 914300
• D) 9.14283 × 10⁵
• E) 914000

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Definitions:

Annuity Due

A type of annuity payment where payments are made at the beginning of each period, instead of at the end, which is common in standard annuities.

Ordinary Annuity

A series of equal payments made at equal intervals over a period of time, with the first payment occurring at the end of the period.

Present Value

The existing value of a future sum or cash flow sequence, assessed with a certain rate of return.

Compounded Annually

An interest calculation method where interest is added to the principal sum at the end of each year, affecting future interest calculations.