An Interest Rate Is 5% Per Annum with Continuous Compounding

question 18

Multiple Choice

An interest rate is 5% per annum with continuous compounding.What is the equivalent rate with semiannual compounding?

• A) 5.06%
• B) 5.03%
• C) 4.97%
• D) 4.94%

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Definitions:

Malignant Cells

Cells that are cancerous and have the ability to grow uncontrollably, invade surrounding tissues, and spread to other parts of the body.

Mitotic Division

A type of cell division in eukaryotic cells where a single cell divides to produce two genetically identical daughter cells.

Mitosis

A type of cell division in eukaryotic cells that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus.

Telomerase

An enzyme that adds nucleotide sequences to the ends of chromosomes, thereby preventing their shortening during cell division.