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Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?Answer The periodic rate
| The periodic rate of interest is 2% and the effective rate of interest is 4%. | ||
| The periodic rate of interest is 8% and the effective rate of interest is greater than 8%. | ||
| The periodic rate of interest is 4% and the effective rate of interest is less than 8%. | ||
| The periodic rate of interest is 2% and the effective rate of interest is greater than 8%. | ||
| The periodic rate of interest is 8% and the effective rate of interest is also 8%. |
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M Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
3rd Edition
0077861779, 978-0077861773
