To Calculate the Future Value of an Amount That Is

question 78

Multiple Choice

To calculate the future value of an amount that is invested at 12%,compounded quarterly,at the end of three years,the interest factor used would be

• A)1% for 12 periods.
• B)3% for four periods.
• C)3% for 12 periods.
• D)12% for three periods.

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Definitions:

Independent

Not influenced or controlled by others; in statistics, refers to variables that are not related or do not affect each other.

Marginal Probability

The probability of an event occurring, disregarding all other variables or outcomes in a probability distribution.

E(XY)

The expected value of the product of two random variables X and Y, indicating their joint mean over all pairs of outcomes.

Marginal Probability

The probability of an event occurring, regardless of the outcomes of other variables; it is calculated by summing the probabilities of the event across all values of the other variables.