An Interest Rate Is 5% Per Annum with Continuous Compounding

question 18

Multiple Choice

An interest rate is 5% per annum with continuous compounding.What is the equivalent rate with semiannual compounding?

• A) 5.06%
• B) 5.03%
• C) 4.97%
• D) 4.94%

---

Definitions:

Sex Cell

A type of reproductive cell in an organism that unites with another from the opposite sex (or mating type) to form a new individual.

Segregation

The enforced separation of different racial or social groups within a community, institution, or country, leading to inequality.

Law of Segregation

A fundamental principle of genetics stating that during the formation of gametes, the two alleles responsible for a trait separate, allowing each parent to contribute one allele.