Which of the Following Is the Correct Expression for the Effective

question 49

Multiple Choice

Which of the following is the correct expression for the effective annual rate (EAR) ?

• A) (1 / Periodic rate of interest)number of borrowing (interest) periods in one year - 1
• B) (1 + Periodic rate of interest)number of borrowing (interest) periods in one year - 1
• C) (1 - Periodic rate of interest)number of borrowing (interest) periods in one year - 1
• D) (1 + Periodic rate of interest)number of borrowing (interest) periods in one year + 1
• E) (1 - Periodic rate of interest)number of borrowing (interest) periods in one year + 1

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Definitions:

Opposing Theories

Theories that contradict each other because they are based on different premises or interpretations of data.

Acquisitive Stage

A phase of cognitive development where individuals acquire and accumulate information and skills, often seen in childhood.

Acquiring Knowledge

The process of obtaining information and understanding through experience, education, or being taught, leading to an increase in mental capability or comprehension.

Solving Practical Problems

involves applying logical and creative thinking to resolve issues or challenges encountered in everyday life.