What Is the Annual Percentage Yield (Or Effective Annual Rate)

question 21

Multiple Choice

What is the annual percentage yield (or effective annual rate) for a nominal rate of 12% compounded continuously? Round your answer to two decimal places. ​

• A)16.18%
• B)12.75%
• C)11.53%
• D)14.26%
• E)18.70%

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Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, at different price levels.

Macropolicy

Policies designed to influence the overall economy, focusing on macroeconomic factors like inflation, unemployment, and economic growth.

World Economy

An international system of economic activities and transactions that transcends national borders, involving the global interconnection of economies through trade, investment, and financial markets.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.