If Interest on a Savings Account Is Compounded Semiannually,the Effective

question 34

Multiple Choice

If interest on a savings account is compounded semiannually,the effective rate of interest will be

• A)higher than the nominal rate.
• B)lower than the nominal rate.
• C)the same as the simple rate.
• D)equal to the nominal rate.
• E)lower than the simple rate.

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Definitions:

Macrosociological

Pertaining to the study of large-scale social processes and structures, focusing on the big picture of society and its institutions.

Microsociological

Pertaining to the study of social interactions and relations at an individual or small group level within the broader discipline of sociology.

Social Institutions

Fundamental structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

Macrosociology

A branch of sociology focused on the study of social systems and populations on a large scale, encompassing the analysis of societal structures, institutions, and processes.