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.

---

Definitions:

George Simmel

was a German sociologist and philosopher who explored the dynamics of social interactions and the structures of urban life.

Totalizations

The process or practice of making comprehensive or totalizing statements or theories, often criticized in postmodern thought for oversimplifying complex realities.

Bricoleur

A person who creates or constructs from a diverse range of available things; or, in Levi-Strauss's anthropology, someone who uses pre-existing tools or materials in new and creative ways.

Knowledge Available

Refers to information and insights that are accessible for use or understanding by individuals or groups.