If the Annual Rate Is 8%, and the Interest Is

question 39

Multiple Choice

If the annual rate is 8%, and the interest is compounded quarterly, what is the effective annual rate?

• A)8.00%
• B)10.25%
• C)10.38%
• D)7.85%
• E)8.24%

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Definitions:

South America

A continent located in the Western Hemisphere, mostly in the Southern Hemisphere, comprising 12 countries and known for its diverse geographical features and cultures.

School

An institution designed for the teaching of students under the direction of teachers.

Craft

Skill in doing or making something, especially with the hands, often implies an artistic or traditional nature of the work.

Rarely Kin

Describes family members or relatives encountered or existing infrequently.