Which of the Following Combinations of Interest Rate and Number

question 34

Multiple Choice

Which of the following combinations of interest rate and number of periods is needed for calculation of the present value of an investment that involves an annual interest rate of 12% for three years with monthly compounding? Number of periods Interest rate

• A) 3 12%
• B) 6 6%
• C) 12 3%
• D) 36 1%

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Definitions:

Ball

A spherical object; in mathematics, the set of all points in space at or below a certain distance from a given point.

Rectangle

A four-sided shape that has four 90-degree angles, with its opposing sides being parallel and of the same length.

Perimeter

The total length around the boundary of a two-dimensional shape.

Falling Object

An object that is under the sole influence of gravity, typically described in physics with equations of motion.