What Is the Effective Rate of Interest on a CD

question 63

Multiple Choice

What is the effective rate of interest on a CD that has a nominal rate of 9.5 percent with interest compounded monthly?

• A) 9.93%
• B) 9.74%
• C) 10.02%
• D) 9.86%

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Definitions:

Incorporation Statute

Laws enacted by a state that outline the requirements for forming and operating a corporation within that state.

Dividends

Corporate profit shares distributed among stockholders, often on a periodic basis.

Express Purposes

Express purposes are specific intentions or objectives that are explicitly stated or declared, often within the context of a legal document or agreement.

Articles of Incorporation

Legal documents filed with the government to legally document the creation of a corporation, outlining its structure, purpose, and compliance with law.