A Bank Pays Interest Quarterly with an EAR of 8

question 16

Multiple Choice

A bank pays interest quarterly with an EAR of 8%.What is the periodic interest rate applicable per quarter?

• A)1.46%
• B)1.80%
• C)1.94%
• D)2.00%

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Definitions:

Verbs

Words used to describe an action, occurrence, or state of being.

Camouflaged Verbs

Verbs that are unnecessarily turned into nouns or adjectives, often making sentences more complicated and harder to understand.

Application

A software program designed to carry out a specific set of tasks or to solve particular problems.

Passive Voice

A grammatical voice in which the subject of the sentence is the recipient of an action rather than the doer, typically involving a form of the verb "to be" and a past participle (e.g., "The letter was written").