The R&M Bank Currently Offers an Investment Account with an Interest

question 39

Multiple Choice

The R&M Bank currently offers an investment account with an interest rate of 8% compounded semi-annually.R&M wants to offer customers another account with interest compounded monthly.If R&M wants the effective rates to be equal, what interest rate should R&M quote for the second account?

• A)7.87%
• B)8.00%
• C)8.16%
• D)24.00%

---

Definitions:

Psychopathology

The scientific study of mental disorders, including their symptoms, etiology (causes), and treatment.

Illness

A state of poor health due to disease, infection, or other malfunctions in the body or mind.

Alateen

A peer support group specifically for teenagers affected by someone else’s alcoholism, offering a safe environment to share experiences and learn coping strategies.

Addicted Individual

A person who persistently engages in compulsive behavior or substance use, despite harmful consequences, due to a physical or psychological dependence.