An Investment Provides a 2% Return Semi-Annually,its Effective Annual Rate

question 11

Multiple Choice

An investment provides a 2% return semi-annually,its effective annual rate is

• A)2%.
• B)4%.
• C)4.02%.
• D)4.04%.
• E)none of the above.

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Definitions:

International Transaction

An international transaction refers to a business or financial exchange crossing national borders, involving trades of goods, services, or capital.

Arbitration Agreement

A contract in which two or more parties agree to settle a dispute outside of the court system, typically through the decision of a neutral third party.

Federal Judge

A judge appointed by the president of the United States and confirmed by the Senate, serving within the federal court system.

Arbitration Agreement

A written contract in which two or more parties agree to settle a dispute outside of court through the arbitration process.