What Is the Effective Interest Rate for an Investment Fund

question 77

Multiple Choice

What is the effective interest rate for an investment fund that pays 12% interest compounded monthly?

• A)1)00%
• B)12.12%
• C)12.68%
• D)14.40%

---

Definitions:

EEOC

The Equal Employment Opportunity Commission is a federal agency that enforces laws against workplace discrimination.

Federal Anti-discrimination Laws

Laws enacted by the federal government to prevent discrimination in various settings, including the workplace, based on race, color, religion, sex, or national origin.

Enforcing

The act of compelling compliance or obedience; ensuring that laws, rules, or orders are followed through appropriate actions or measures.

Social Security Benefits

Payments made from the government to eligible individuals, typically retirees or disabled workers, as part of a social insurance program.