A General Rule for Estimating the Distance in Kilometers Between

question 2

Multiple Choice

A general rule for estimating the distance in kilometers between you and a lightning bolt is to count the number of seconds between the time you see the flash and the time you hear the thunder and then divide by

• A)2
• B)3
• C)4
• D)5
• E)None of these is correct.

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Definitions:

Effective Interest Method

The effective interest method is an accounting practice used to amortize bond premiums or discounts over the life of the bond, producing a constant rate of interest over the period.

Semiannual Interest Date

The twice-yearly date on which interest payments are made to bondholders or lenders.

Discount

A reduction from the usual cost of something, often used as a sales strategy to encourage purchases.

Amortize

The process of spreading out a loan or intangible asset cost over a specific period of time for accounting and tax purposes.