Which of the Following Amounts Is Closest to the End

question 92

Multiple Choice

Which of the following amounts is closest to the end value of investing $10,000 for 18 months at a stated annual interest rate of 12% compounded quarterly?

• A)$11,800
• B)$11,852
• C)$11,940
• D)$11,961
• E)None of the above is within $100 of the correct answer.

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Definitions:

Term Insurance

A type of life insurance policy for which premiums are paid for a specified term and payment is made by the insurer only if the insured dies within the term period.

Cancel Policy

A cancel policy refers to the terms under which an agreement, insurance policy, or service contract can be terminated before its natural expiration date.

Advance Written-notice

A notification given in writing ahead of time, often a requirement in legal and contractual situations.

Incontestability Clause

A provision in a life insurance policy that prevents the insurer from disputing the policy's validity after it has been in force for a certain period, typically two years.