An Interest Rate Is 6% Per Annum with Annual Compounding

question 6

Multiple Choice

An interest rate is 6% per annum with annual compounding.What is the equivalent rate with continuous compounding?

• A) 5.79%
• B) 6.21%
• C) 5.83%
• D) 6.18%

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Definitions:

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in a market, aiming to keep prices within a certain range.

Exports

Goods or services sent from one country to another for sale or trade.

Marketing Boards

Organizations that control the supply or pricing of certain agricultural products in various countries.

Developing Nations

Countries with a less developed industrial base and a lower Human Development Index compared to more developed countries.