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The Highest Effective Annual Rate That Can Be Derived from an Annual

Question 34

Multiple Choice

The highest effective annual rate that can be derived from an annual percentage rate of 9 percent is computed as:

A) (1 + .09/365) (365) .
B) e.⁰⁹q.
C) 1.09e.
D) e.⁰⁹ − 1.
E) (1 + .09/365) ³⁶⁵ − 1.

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