If the Effective Rate of Interest If 15

question 40

Multiple Choice

If the effective rate of interest if 15.55% based on monthly compounding, determine the nominal rate of interest.

• A)17.54%
• B)16.54%
• C)15.54%
• D)14.54%

---

Definitions:

Difficult Concepts

Ideas or principles that are hard to understand or grasp due to their complexity or abstract nature.

Clarity

The quality of being clear, understandable, and free from ambiguity in communication or expression.

Visual

Pertaining to sight or seeing, often used in the context of graphical elements or aids that enhance understanding or appeal.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.