If the Annual Rate Is 10%, and the Interest Is

question 18

Multiple Choice

If the annual rate is 10%, and the interest is compounded quarterly, what is the effective annual rate?

• A)10.00%
• B)10.25%
• C)10.38%
• D)12.00%
• E)12.68%

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Definitions:

Protons

Positively charged subatomic particles found in the nucleus of an atom, defining the element's atomic number.

Osmium

A dense, hard, bluish-white transition metal in the platinum group that is the most dense naturally occurring element.

Isotope

A variant of a particular chemical element which differs in neutron number, though it shares the same number of protons.

Electrons

Negatively charged subatomic particles with a very small mass, found orbiting the nucleus of an atom.