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Which of the Following Combinations of Interest Rate and Number

Question 34

Multiple Choice

Which of the following combinations of interest rate and number of periods is needed for calculation of the present value of an investment that involves an annual interest rate of 12% for three years with monthly compounding? Number of periods Interest rate


A) 3 12%
B) 6 6%
C) 12 3%
D) 36 1%

Correct Answer:

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