Find the Effective Rate Corresponding to the Given Nominal Rate

question 2

Multiple Choice

Find the effective rate corresponding to the given nominal rate. Round your answers to two decimal places. ​
10% / year compounded semiannually
​ _____%
​
3% / year compounded quarterly
​ _____%
​

• A) 3.03%, 3.05%
• B) 3.04%, 3.05%
• C) 10.25%, 3.03%
• D) 3.03%, 3.04%

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Definitions:

European Diseases

Infectious diseases brought to the Americas by European explorers and colonists that had devastating impacts on indigenous populations due to lack of prior exposure and immunity.

Gold and Silver

Precious metals that have been traditionally used as currency, in jewelry, and for industrial purposes due to their value and properties.

Inflation

A general increase in prices and fall in the purchasing value of money.

Balance of Trade

The difference in value between a country's imports and exports over a certain period, indicating the economic health of a nation.