What Is the Effective Annual Rate (EAR)

question 104

Multiple Choice

What is the effective annual rate (EAR) ?

• A)the interest rate that would earn the same interest with annual compounding
• B)the ratio of the number of the annual percentage rate to the number of compounding periods per year
• C)the discount rate for an n-year time interval,where n may be more than one year or less than or equal to one year (a fraction)
• D)the cash flows from an investment over a one-year period divided by the number of times that interest is compounded during the year

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Definitions:

The Military

Refers to the armed forces of a country, responsible for defending it from threats and conducting warfare.

Heterosexism

is an ideological system that denies, denigrates, and stigmatizes any non-heterosexual form of behavior, identity, relationship, or community.

Gay Officers

Refers to law enforcement or military personnel who identify as homosexual, highlighting considerations of sexuality within professional and sometimes discriminatory environments.

Lesbian Officers

Female law enforcement officers who identify as lesbian.