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n a compounding economy, which statement accurately describes the relationship between the annual nominal interest rate and the annual effective interest rate? A. Both rates
n a compounding economy, which statement accurately describes the relationship between the annual nominal interest rate and the annual effective interest rate?
- A. Both rates will be identical.
- B. The annual effective rate will exceed the nominal rate.
- C. There is no connection between the two.
- D. The correlation depends on the number of compounding periods.
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
