A Local Bank Is Offering a Zero-Coupon Certificate of Deposit

question 15

Multiple Choice

A local bank is offering a zero-coupon certificate of deposit for $25,000. At maturity, three years from now, the investor will receive $32,000. What is the rate of return on this investment?

• A) 3 percent
• B) 6 percent
• C) 9 percent
• D) 12 percent

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Definitions:

Informal Structure

The network of personal and social relationships that naturally forms within an organization, operating alongside the formal structure.

Focus

The concentration and attention on a specific task or objective, minimizing distractions to achieve a set goal.

Conflict Resolution

A way of resolving disputes or disagreements between parties using peaceful and constructive problem-solving techniques.

Group Process

The dynamics and interactions that occur within a group as it works towards achieving its objectives.