If $476 Invested Today Yields $500 in One Year's Time,what

question 26

Multiple Choice

If $476 invested today yields $500 in one year's time,what is the discount rate?

• A)0.05
• B)0.95
• C)1.05
• D)1.50
• E)0.24

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Definitions:

Superscript

A character, such as a number or letter, that is set slightly above the normal line of type, often used in mathematical expressions to denote powers or indices.

Solve For R

A common phrase in finance and mathematics referring to the process of finding the rate of interest or return.

Nearest Hundredth

A term referring to rounding a number to the second decimal place to make it closer to the exact value by hundredths.

Six-Figure Accuracy

A level of precision in numerical calculations where values are correct to within one part in a hundred thousand.