Find the Effective Rate Corresponding to the Given Nominal Rate

question 265

Multiple Choice

Find the effective rate corresponding to the given nominal rate.Round your answers to three decimal places. 8% / year compounded monthly _____%
8% / year compounded daily _____%

• A)8.328%, 8.243%
• B)8.243%, 8.000%
• C)8.328%, 8.000%
• D)8.300%, 8.328%

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Definitions:

Esophagus

The muscular tube that connects the throat (pharynx) with the stomach and transports swallowed food and liquids.

Thyroid Gland

A butterfly-shaped gland located in the neck that produces hormones regulating metabolism, energy generation, and body temperature.

Vasoconstriction

The narrowing of the blood vessels resulting from contraction of the muscular wall of the vessels, which increases blood pressure.

Cardiovascular

Pertaining to the heart and blood vessels, relating to the system that circulates blood throughout the body.