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16) The rate of interest agreed upon contractually charged by a lender or promised by a borrower is the ________ interest rate. A) effective B)
16) The rate of interest agreed upon contractually charged by a lender or promised by a borrower is the ________ interest rate.
A) effective
B) nominal
C) discounted
D) continuous
17) Calculate the future value of $6,490 received today and deposited for five years in an account which pays interest of 14 percent compounded semiannually.
18) Calculate the future value of $10,000 received today and deposited for six years in an account which pays interest of 12 percent compounded quarterly.
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