An Interest Rate That Has Been Annualized Using Compound Interest

question 13

Multiple Choice

An interest rate that has been annualized using compound interest is termed the:

• A) discount factor.
• B) annual percentage rate.
• C) discounted interest rate.
• D) effective annual interest rate.

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Definitions:

Source Documents

Original records (such as invoices, receipts, contracts) that provide the evidence and details of business transactions.

Business

A commercial organization or enterprise that engages in professional, commercial, or industrial activities.

Building Consultant

A professional who advises on the construction, modification, or repair of buildings, ensuring compliance with legal and regulatory requirements and achieving desired functionality and aesthetics.

Ledger

A book or collection of financial accounts where transactions are summarized and classified.