-Using Table 6

question 64

Multiple Choice

-Using Table 6.1, the inflation rate for 2001 would be

• A)76.7% (176.7-100).
• B)1.6% (((176.7-174.0)/174.0)*100 %).
• C)2.7% (176.7-174.0).
• D)2.0% (180.9-174.0)/(2*174.0)*100%).

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Definitions:

Semi-Annual Deposits

Deposits made twice a year into a financial account or investment vehicle.

Compounded Quarterly

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.

Compounded Semi-Annually

Interest that is computed and added to the principal twice a year, allowing the investment to grow more rapidly.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth.