You Decide to $10,000 in a Bank Account

question 96

Multiple Choice

You decide to $10,000 in a bank account.If the value of your savings grows to $10,200 in one year's time,what is the interest rate on your savings?

• A)5%
• B)4%
• C)3%
• D)2%
• E)1%

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Definitions:

Formal Reasoning

The process of logical thinking and problem-solving that follows established rules and procedures, typically associated with mature cognitive development.

Analytic Thought

A cognitive process that involves breaking down complex information or problems into smaller parts or basic principles for better understanding and problem-solving.

Deductive Reasoning

A logical process where a conclusion follows necessarily from the stated premises, moving from general premises to a specific conclusion.

Intuitive Thought

A cognitive process that occurs without deliberate analytical effort, often based on quick, gut feelings or experiences.