Compare the Economic Values of Two Options Given an Annual

question 48

Multiple Choice

Compare the economic values of two options given an annual rate of 4.5%. Option 1 - $1,100 in 1 month and $850 in 3 months. Option 2 - $1,050 in 6 months and $925 in 9 months. Given the following information, choose the best option.

• A) Option 1 - benefit of $14.74
• B) Option 1 - benefit of $24.74
• C) No difference between options
• D) Option 2 - benefit of $14.74
• E) Option 2 - benefit of $24.74

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Definitions:

DMM Display

The visual interface of a Digital Multimeter that shows measurements like voltage, current, and resistance.

Anode

Positive electrode.

Cathode

Negative electrode.

Diode

A two-terminal, solid-state, semiconductor device that allows current flow in one direction only. Acts like a sort of electrical one-way check valve.