What Is the Effective Annual Rate of Interest on a Deposit

question 28

Multiple Choice

What is the effective annual rate of interest on a deposit that pays interest of 10% continuously compounded?

• A) 10.000%
• B) 10.517%
• C) 1.105%
• D) 9.531%

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Definitions:

Union Representative

A designated individual who represents and defends the interests of union members within an organization.

Social Conversations

Dialogues between individuals or groups aimed at social interaction rather than transactional or informational exchanges.

Busy

Occupied with tasks or engagements; having a high level of activity, often resulting in limited availability.

Reframing

The practice of changing the way situations or ideas are viewed or interpreted, often to find more positive or functional perspectives.