What Is the Annually Compounded Rate of Interest on an Account

question 83

Multiple Choice

What is the annually compounded rate of interest on an account with an APR of 10 percent and monthly compounding?

• A)10.00 percent
• B)10.47 percent
• C)10.52 percent
• D)11.05 percent

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Definitions:

Federal Budget

A government's plan for revenue and spending over a specific period.

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and domestic lenders.

Treasury Bills

Short-term government securities with maturities of less than one year, sold to investors to finance governmental debt.

Federal Government's Budget

The financial plan for a fiscal year, detailing the government's projected expenses and revenues, managed by the federal government.