If the Stated Interest Rate Is 12% Per Year, but It

question 115

Multiple Choice

If the stated interest rate is 12% per year, but it is compounded semiannually, then the adjusted rate used for present or future value calculations will be

• A)12% per year.
• B)3% per quarter.
• C)6% per 6-month period.
• D)1% per 6-month period.

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Definitions:

Reflexively

In a manner that involves or denotes an action performed as a reflex, without conscious thought, or as a response to oneself.

Excrete

The process by which living organisms remove waste materials from their bodies.

Permanent Cessation

The irreversible end of an activity, function, or existence; often used in reference to the cessation of biological life or specific bodily functions.