Determine the Rate of Return (Yield) on a Savings Account

question 71

Multiple Choice

Determine the rate of return (yield) on a savings account in which you deposited $300.00 and earned $6.00 in interest after one year.

• A) 5.00%
• B) 0.05%
• C) 2.00%
• D) 0.20%
• E) 18.00%

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Definitions:

Probability Distribution

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of items in the set.

Uniform Probability Distribution

A type of probability distribution where all outcomes are equally likely to occur.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon or experiment.