An interest rate obtained by dividing the nominal rate per year by the number of compounding periods

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An interest rate obtained by dividing the nominal rate per year by the number of compounding periods in that year is

a. A nominal interest rate

b. An effective interest rate

c. An effective interest rate only if the compounding period is monthly

d. Either

(b) or (c)

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Basics Of Engineering Economy

ISBN: 9780073376356

2nd Edition

Authors: Leland T. Blank, Anthony Tarquin

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Question Posted: Oct 26, 2024 07:00 AM

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An interest rate obtained by dividing the nominal rate per year by the number of compounding periods

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Basics Of Engineering Economy

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