Second National Bank Computes Interest Semiannually

question 66

Multiple Choice

Second National Bank computes interest semiannually.If the annualized interest rate (APR) is currently 6 percent,the amount deposited today should be multiplied by which future value factor to calculate the amount that will accumulate by the end of 10 years?

• A)20 periods at 12 percent
• B)20 periods at 3 percent
• C)10 periods at 6 percent
• D)10 periods at 3 percent

---

Definitions:

Digital Signature

An electronic form of a signature that can be used to authenticate the identity of the sender of a message or signer of a document.

Encrypted

The process of converting information or data into a code, especially to prevent unauthorized access.

Electronic Stamp

A digital equivalent of a physical postage stamp or seal, used to authenticate electronic documents or transactions.

Plain Text Content Control

A feature in word processing software that allows for the insertion and management of unformatted text in a document.