Nominal Interest Rate Is Calculated by

Multiple Choice

Nominal interest rate is calculated by

A) summing up all interest rates for all compounding periods.
B) converting a given interest rate with a compounding period to an equivalent interest rate with a one-year compounding period.
C) dividing the interest rate per compounding period by the number of compounding periods per year.
D) multiplying the simple interest rate by the number of years.
E) multiplying the interest rate per compounding period by the number of compounding periods per year.