Compounding Refers Directly to

question 42

Multiple Choice

Compounding refers directly to

• A)finding the present value of a future sum of money.
• B)finding the future value of a present sum of money.
• C)changes in the interest rate over time on a bank account or a similar savings vehicle.
• D)interest being earned on previously-earned interest.

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Definitions:

Bias

A tendency to lean in a certain direction, often to the detriment of an open mind; in statistics, a systematic error introduced into sampling or testing.

Bipolar Disorder

A mood disorder in which the person alternates between the hopelessness and lethargy of depression and the overexcited state of mania. Formerly called manic-depressive disorder.

Anxiety Disorder

A category of mental health disorders characterized by significant and persistent fear, anxiety, or avoidance behaviors.

Lethargic Hopelessness

A state characterized by a lack of energy and a pervasive sense of despair or pessimism.