Two Numbers,one with 4 Significant Figures and the Other with 3

question 36

Multiple Choice

Two numbers,one with 4 significant figures and the other with 3 significant figures,are combined using the math operations given below.Which operation can give a result with fewer than 3 significant figures?

• A) addition
• B) subtraction
• C) multiplication
• D) division

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Definitions:

Time Value of Money

The concept that a sum of money is worth more now than the same amount in the future due to its potential earning capacity.

Present Value

The worth today of money expected to be received in the future or sequences of cash inflows, utilizing a specific return rate.

Compound Value

The future value of an investment, including the principal and the compounded interest over time.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window. Alternatively, it can represent the rate used to discount future cash flows in present value calculations.