11. The amount of simple interest is determined by multiplying the amount in savings by the:

A. annual interest rate. B. time period. C. number of months in a year. D. time period and number of months. E. annual interest rate and the time period.

12. If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be:

a) 10% per annum b) 10.10 per annum c) 10.25%per annum d) 10.38% per annum