Which of the Following Mathematical Equations Is Used to Compute

question 22

Multiple Choice

Which of the following mathematical equations is used to compute the effective annual rate (EAR) ?

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

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Definitions:

Material Specifications

Detailed descriptions of the properties, standards, and characteristics that materials must meet for their intended use in manufacturing or construction.

Quantity Shipped

The total amount of goods that have been sent to customers or distribution points within a specified period.

Origin of the Shipment

Refers to the initial location or country from which a shipment of goods starts its journey to the buyer.

Nonferrous Metal

Metals that do not contain a significant amount of iron. This category includes aluminum, copper, lead, nickel, tin, titanium, and zinc among others.