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

question 40

Multiple Choice

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

• A)8.00%
• B)10.25%
• C)10.38%
• D)7.85%
• E)8.30%

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Definitions:

Prospects

Potential customers or clients who have been identified as fitting the target market and who may have an interest or need for a company’s product or service.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the creation of tools, machines, and software to solve problems or improve existing solutions.

Avoid Duplicating

involves taking measures to prevent repetition or copying in processes, information, or products to ensure uniqueness and efficiency.

Corporate Credit Ratings

Assessments made by credit rating agencies that evaluate a corporation's ability to repay its debts.