Compound Interest Is Computed Quarterly on $700 for Seven Years

question 77

Multiple Choice

Compound interest is computed quarterly on $700 for seven years at 12 percent annual interest.The future value table is used by multiplying the $700 by which factor?

• A)28 periods at 3 percent
• B)7 periods at 3 percent
• C)7 periods at 12 percent
• D)28 periods at 7 percent

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Definitions:

Percentage Point

A unit for measuring the difference between percentages, emphasizing the change in values over time.

Slope

In mathematics, the slope represents the rate of change between two points on a line, indicating its steepness and direction.

Positive

A term indicating the presence of or addition to something, often used in a favorable or optimistic sense.

Relation

In mathematics and computer science, it is a set of ordered pairs, showing how two sets of objects are related to each other.