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:

Flatworm

A member of the phylum Platyhelminthes, characterized by their flat, soft bodies, including both free-living and parasitic species.

Electric Shock

The physical effect of electric current passing through the body, which can cause pain or injury.

Conditioned

The process by which an organism learns to associate two stimuli or a stimulus and a behavior, leading to a learned response.

Generalization

The process of extending the application of a response to stimuli that are similar but not identical to the original stimulus.