If You Put $1,000 in the Bank Today at an Interest

question 87

Multiple Choice

If you put $1,000 in the bank today at an interest rate of 6% what is its value in two years?

• A)$2,000(1.06)
• B)$1,000 + $(1.06)²
• C)$1,000(1.06)²
• D)None of the above are correct.

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Definitions:

Exponentially Smoothed

A data smoothing technique that gives recent observations more weight than older observations, often used in time series analysis.

Smoothing Constant

A parameter used in exponential smoothing methods that determines the level of smoothing applied to the data.

Seasonal Variation

Fluctuations in data or economic activity that occur regularly based on the season or time of year.

Time Series

It is a sequence of data points indexed in time order, often used to analyze and predict future events based on past trends.