The Average Person

question 20

Multiple Choice

The average person

• A)is happy more often than unhappy.
• B)is unhappy more often than happy.
• C)is happy and unhappy about equal amounts of time.
• D)does not care about happiness.

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Definitions:

Actual Rate

The real interest rate or return on an investment, taking into account inflation.

Interest

The cost of borrowing money or the payment made to a lender by a borrower for the use of money, typically expressed as an annual percentage rate.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them at a later date.

Effective Annual Rate

The interest rate on a loan or financial product restated from the nominal rate as an annual rate, reflecting the effects of compounding.