Calculate the Effective Annual Interest Rate If You Are Quoted

question 54

Multiple Choice

Calculate the effective annual interest rate if you are quoted 8% per annum,compounded every three months.

• A) 11.10%
• B) 8.24%
• C) 8.22%
• D) 8.00%

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Definitions:

Argument

A set of statements structured to support a conclusion through reasoning.

Earth Spinning

The rotation of the Earth on its axis, causing the cycle of day and night.

Explanation

A statement or account that makes something clear or understandable, often providing the reasons for a phenomenon or event.

Argument

A set of statements or reasons given with the aim of persuading others that an action or idea is right or wrong.