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The Company Financial Officer Was Interested in the Average Cost

question 233

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The company financial officer was interested in the average cost of PCs that had been purchased in the past six months. A random sample of the price of 10 computers was taken with the following results:
$3,250, $1,127, $2,995, $3,250, $3,445, $3,449, $1,482, $6,120, $3,009, $4,000

-What is the mode?


Definitions:

Quarterly Compounding

A financial process where interest is added to the principal sum of a deposit or loan at the end of each quarter, resulting in the interest bearing interest.

Effective Annual Rate

The annual return on an investment or loan taking compounding into account, expressed as a percentage.

Compounded Annually

This is an interest calculation method where interest is added to the principal once a year.

Effective Rate

The actual interest rate of an investment or loan, taking into account the effects of compounding.

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