If a Bank Pays a 4

question 77

Multiple Choice

If a bank pays a 4.50% nominal rate,with monthly compounding on deposits,what effective annual rate (EFF%) does the bank pay?

• A)3.35%
• B)3.72%
• C)4.13%
• D)4.59%

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Definitions:

Accumulate

To gather or collect a substance, objects, or information gradually over time.

Moving Soil

Refers to the process of relocating topsoil or substrata from one location to another, often in landscaping and agricultural practices.

Acidic Soil PH

Soil that has a pH level below 7, indicating a higher concentration of hydrogen ions and often requiring adjustment for certain plant growth.

Macronutrient

An essential element required in fairly large amounts for normal growth. Compare with micronutrient.