An Interest Rate Is 12% Per Annum with Semiannual Compounding

question 10

Multiple Choice

An interest rate is 12% per annum with semiannual compounding.What is the equivalent rate with quarterly compounding?

• A) 11.83%
• B) 11.66%
• C) 11.77%
• D) 11.92%

---

Definitions:

Premature

Occurring before the expected time or before the completion of the normal gestation period, often used to describe early birth.

Full-Term

Referring to a pregnancy that has reached between 39 and 40 weeks of gestation, indicating that the baby is fully developed and ready for birth.

Very Low Birth Weight

A term used to describe babies who are born weighing less than 1500 grams (3 pounds, 4 ounces).

Pounds

A unit of weight commonly used in the United States and the United Kingdom, equivalent to 0.453592 kilograms.