Assuming Semi-Annual Compounding and a Quoted Mortgage Rate of 9

question 28

Multiple Choice

Assuming semi-annual compounding and a quoted mortgage rate of 9 percent, what are the effective annual rate and the effective monthly rate?

• A)4.5 percent, 1 percent
• B)9 percent, 0.75 percent
• C)9.2 percent, 0.736 percent
• D)18.81 percent, 0.75 percent
• E)18.81 percent.0.736 percent

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