If the Cost of Going to the ATM Is $1

question 52

Multiple Choice

If the cost of going to the ATM is $1 and the nominal interest rate is 5 percent, someone who has a 15 percent probability of having his cash lost or stolen and spends $10 each day will go to the ATM once in every ____ days approximately.

• A)10
• B)13
• C)16
• D)19

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Definitions:

Edward Bellamy

A 19th-century American author known for his utopian novel, "Looking Backward", which envisions a future society based on cooperative living and economic equality.

Haymarket Affair

A significant event in labor history occurring in Chicago in 1886, involving a bombing at a labor protest and its aftermath, which affected the labor movement and public opinion on labor rights.

Knights of Labor

A significant labor organization in the late 19th century United States, which aimed to promote worker's rights and social reforms.

Decline

A gradual decrease in quality, quantity, or importance of something over time.