The Highest Effective Annual Rate That Can Be Derived from an Annual

question 323

Multiple Choice

The highest effective annual rate that can be derived from an annual percentage rate of 9% is computed as:

• A) .09^e-1.
• B) e^.09* q.
• C) e * (1 + .09).
• D) e^.09- 1.
• E) (1 + .09)^q.

---

Definitions:

Choledochotomy

A surgical incision into the common bile duct, often performed to remove gallstones or to relieve bile duct obstruction.

Catabolism

The breakdown of complex molecules in living organisms to form simpler ones, together with the release of energy; destructive metabolism.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine, where most of the end absorption of nutrients takes place.

Jejunum

The middle section of the small intestine in humans and most mammals, lying between the ileum and the duodenum.