If a Bank Pays 5 Percent Compounded Semi‑annually, the True

question 5

True/False

If a bank pays 5 percent compounded semi‑annually, the true rate of interest is less than 5 percent annually.​

---

Definitions:

Gross Income

The total income received before any deductions or taxes are taken out.

Acreage Allotment

A government policy that limits the amount of land that can be used for certain agricultural crops, often aimed at controlling supply and stabilizing market prices.

Agricultural Products

Items that originate from farming and the cultivation of the land, including crops, livestock, and raw materials.