If a Bank Pays 5 Percent Compounded Daily,the True Rate

question 6

True/False

If a bank pays 5 percent compounded daily,the true rate of interest is greater than 5 percent.

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Definitions:

Subliminal Stimuli

Stimuli that are below the threshold of conscious awareness, yet can influence thoughts, feelings, or actions.

Threshold

The level of strength a stimulus must reach to be detected or to produce a response.

Weber's Law

A principle in psychology that posits the smallest noticeable difference in stimulus intensity is proportional to the intensity of the original stimulus.

Notice A Difference

The act of observing or identifying a change or dissimilarity between two or more things, often an initial step in analytical or critical thinking processes.