How Many Compounding Periods Does It Take for a Non-Interest

question 63

Multiple Choice

How many compounding periods does it take for a non-interest bearing bond of $420 150 to be reduced to $199 989 at a discount rate of 5.44% compounded monthly?

• A) 146.12
• B) 121.12
• C) 154.12
• D) 184.12
• E) 164.12

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Definitions:

Remained Isolated

The state in which a population or species has been geographically separated from others, leading to limited genetic exchange.

Gluteus Maximus

The largest and most superficial of the three gluteal muscles, situated in the buttocks, responsible for movement of the hip and thigh.

Enlarged

Refers to an increase in size or volume, commonly used to describe a change in physical dimensions of an object or organism.

Cerebral Cortex

The outer layer of the brain's cerebrum, involved in complex functions like consciousness, thought, emotion, and memory.