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    Engineering Economics
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    Exam 2: Time Value of Money
  5. Question
    Suppose the Nominal Rate Is 10% Per Year and Interest
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Suppose the Nominal Rate Is 10% Per Year and Interest

Question 48

Question 48

Multiple Choice

Suppose the nominal rate is 10% per year and interest is compounded every two years. What is the effective annual rate?


A) 4.88%
B) 9.54%
C) 10.25%
D) 21%
E) 44%,

Correct Answer:

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