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True or False

1. The Ordinary Simple Interest is the sane as the Banker's Rule

2. The effective rate is the interest rate that is calculated based on the actual amount of money that will be paid by the borrower.

3. Shortening the period of a loan lowers the total interest paid

4. To invest money at a rate compounded monthly is better than at the same rate compounded annually

5. The actual time is being used in getting the exact simple interest

6. The actual time from May 22, 1995 to July 09, 1995 is 48 days

7.Compounding frequency refers to yhe number of times per year that interest is computed

8. Compound interest is computed periodicallt and is subtracted from the latest amount

9.If interest is compounded quarterly, then interest is converted to principal every 4 months

10. For a nominal interest rate of 12 2/5 % what is the compounding frequency period rate is 6.2 %

a. annually

b. Semianually

c. Monthly

d. Quarterly