Calculate the Effective Annual Interest Rate If You Are Quoted

question 58

Multiple Choice

Calculate the effective annual interest rate if you are quoted 8% per annum,compounded half yearly.

• A) 8.27%
• B) 8.16%
• C) 8.0%
• D) 4.0%

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Definitions:

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and defining the element.

Electrons

Particles smaller than atoms with a negative charge, essential for conducting electricity in solid substances.

Buffers

Substances that minimize changes in pH by absorbing or releasing hydrogen ions, helping maintain a stable environment in solutions like blood.

Salts

Ionic compounds resulting from the neutralization reaction of an acid and a base, consisting of cations (other than H+) and anions (other than OH-).