Multiple Choice
bank account pays a 6% nominal rate of interest.The interest is compounded quarterly.Which of the following statements is CORRECT?
A) The periodic rate of interest is 1.5% and the effective rate of interest is 3%.
B) The periodic rate of interest is 6% and the effective rate of interest is greater than 6%.
C) The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.
D) The periodic rate of interest is 3% and the effective rate of interest is 6%.
E) The periodic rate of interest is 6% and the effective rate of interest is also 6%.
Correct Answer:
Verified
Correct Answer:
Verified
Q54: Suppose a U.S.treasury bond will pay $2,500
Q74: Suppose Sally Smith plans to invest $1,000.She
Q110: aunt has $500,000 invested at 5.5%, and
Q111: father is about to retire, and he
Q113: a bank compounds savings accounts quarterly, the
Q114: just deposited $2,500 in a bank account
Q115: borrowed $50,000 which you must repay in
Q116: time line is not meaningful unless all
Q117: much would $1, growing at 3.5% per
Q133: Which of the following statements regarding a