Your Bank Account Pays an 8% Nominal Rate of Interest

question 145

Multiple Choice

Your bank account pays an 8% nominal rate of interest.The interest is compounded quarterly.Which of the following statements is CORRECT?

• A) The periodic rate of interest is 2% and the effective rate of interest is 4%.
• B) The periodic rate of interest is 8% and the effective rate of interest is greater than 8%.
• C) The periodic rate of interest is 4% and the effective rate of interest is less than 8%.
• D) The periodic rate of interest is 2% and the effective rate of interest is greater than 8%.
• E) The periodic rate of interest is 8% and the effective rate of interest is also 8%.

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Definitions:

Back Flex

The act of bending the spine backward or the movement involving the retraction of the spine.

Erector Spinal

A group of muscles running along the spine that help keep the spine erect and perform rotational movements.

Unilateral Contraction

Unilateral Contraction refers to the tensing of muscles on only one side of the body, often used in targeted exercises or movements.

Vertebral Column

The vertebral column, also known as the spine, is a sequence of vertebrae extending from the skull to the lower back, providing structural support and protecting the spinal cord.