Solved

As a Result of Compounding, the Effective Annual Rate on a Bank

Question 24

True/False

As a result of compounding, the effective annual rate on a bank deposit (or a loan)is always equal to or greater than the nominal rate on the deposit (or loan).

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q19: Which of the following statements is CORRECT?<br>A)

Q20: S.Treasury bond will pay a lump sum

Q21: At the end of 10 years, which

Q22: You just deposited $2, 500 in a

Q23: You are offered a chance to buy

Q25: If the discount (or interest)rate is positive,

Q26: Which of the following statements is CORRECT?<br>A)

Q27: The going rate of interest on a

Q28: Billy Thornton borrowed $20, 000 at a

Q29: Time lines can be constructed for annuities