MPC = 0.9;MPM = 0.2

question 88

Multiple Choice

MPC = 0.9;MPM = 0.2
-Refer to the above information to answer this question.What is the value of the MLR?

• A)0.1.
• B)0.3.
• C)0.5
• D)0.7.

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Definitions:

Discounted

A reduction applied to the regular price of products or services, often used as an incentive for customers.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including principal and any accrued interest.

365-Day Year

A calendar assumption that treats each year as having 365 days for calculating interests or other daily based computations.

Leap Years

Years in which an extra day is added to the calendar (February 29) to keep the calendar year synchronized with the astronomical year.