Identify the Correct Expression for the Effective Annual Rate (EAR)

question 23

Multiple Choice

Identify 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:

Internal Attributions

The process of inferring that personal factors, rather than external factors, are the cause of an event or behavior, suggesting that a person’s actions are due to their individual characteristics such as personality or effort.

Situational Causes

Factors in the environment that influence behavior, contrasted with dispositional factors which are traits or characteristics within the person.

Prejudice

Negative attitude held by a person about the members of a particular social group.

Discrimination

Treating people differently because of prejudice toward the social group to which they belong.