Bank Account Pays a 6% Nominal Rate of Interest

question 112

Multiple Choice

bank account pays a 6% nominal rate of interest.The interest is compounded quarterly.Which of the following statements is CORRECT?

• A)The periodic rate of interest is 1.5% and the effective rate of interest is 3%.
• B)The periodic rate of interest is 6% and the effective rate of interest is greater than 6%.
• C)The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.
• D)The periodic rate of interest is 3% and the effective rate of interest is 6%.
• E)The periodic rate of interest is 6% and the effective rate of interest is also 6%.

---

Definitions:

Optimal Solution

A solution that represents the best possible outcome, often in terms of efficiency or cost, within a given set of constraints.

Route Combinations

Various possible paths or methods that can be taken to achieve a particular production process or delivery.

Transportation Problem

A type of optimization problem in logistics that involves finding the most efficient distribution of goods from multiple sources to multiple destinations.

Dummy Destination

A fictitious or placeholder location used in routing, scheduling, or logistical planning to simplify calculations or model scenarios.