Which Is More Costly: Paying 12% Simple Interest for Two

question 45

Short Answer

Which is more costly: paying 12% simple interest for two years or paying 11% annual compounding interest for two years?

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Definitions:

Pharmacology

The branch of medicine concerned with the uses, effects, and modes of action of drugs.

IQ Testing

The assessment of a person's intellectual capabilities and potential through a series of standardized tasks and puzzles.

Mean

A statistical measure representing the average value in a set of numbers, calculated by dividing the sum of all values by the quantity of numbers.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.