What Is the Effective Annual Rate If the APR Is

question 65

Multiple Choice

What is the effective annual rate if the APR is 6.35 percent,compounded continuously?

• A)6.427%
• B)6.447%
• C)6.539%
• D)6.602%
• E)6.556%

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Definitions:

Capacity for Abstract Reasoning

The capacity to contemplate concepts, principles, and entities that are not tangible or visible.

Negligent

Failing to take proper care in doing something, often resulting in damage or injury to others.

Authoritarian

Characterized by or favoring strict obedience to authority, especially that of the government, often at the expense of personal freedom.

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are lenient and avoid confrontation.