If an Investment Provides a 2% Return Semi-Annually, Its Effective

question 11

Multiple Choice

If an investment provides a 2% return semi-annually, its effective annual rate is

• A)2%.
• B)4%.
• C)4.02%.
• D)4.04%.

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Definitions:

Surface Mining

A method of extracting mineral and energy resources near the surface of the earth by removing the soil and rock that cover the mineral deposits.

Waste Soil

Soil that has been contaminated or degraded due to improper disposal of waste or pollutants.

Acid Mine Drainage

Acid mine drainage refers to the acidic water that emerges from mining operations, often containing high levels of toxic metals and pollutants that can cause extensive environmental damage.

Groundwater

Water that is held underground in the soil or in pores and crevices in rock.