Rates Over One Year Determine the Interest Rate Earned on a $450

question 147

Multiple Choice

Rates over One Year Determine the interest rate earned on a $450 deposit when $475 is paid back in one year.

• A)0.89 percent
• B)1.13 percent
• C)5.56 percent
• D)13.0 percent

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Definitions:

Taxable Income

The income subject to taxes after deductions and exemptions.

Price Elasticity

The calculation of how price alterations affect the demand level of a good.

Excise Tax

A specific type of tax levied on particular goods, services, or transactions, often included in the price of items such as gasoline, alcohol, and tobacco.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxes according to governmental regulations.