An 8% APR with Monthly Compounding Is Closest to Which

question 62

Multiple Choice

An 8% APR with monthly compounding is closest to which of the following?

• A)an EAR of 6.7%
• B)an EAR of 7.72%
• C)an EAR of 8.3%
• D)an EAR of 8.5%
• E)an EAR of 9.14%

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Definitions:

Central Tendency Error

The inaccurately concentrated rating of all employees towards the middle of a performance scale, avoiding the extremes of high and low evaluations.

Perceptual Error

A cognitive mistake that occurs when interpreting information about the environment, often leading to inaccuracies in judgment or understanding.

Supervisor

An individual in a position of authority who oversees and directs the work of other employees to ensure organizational goals are met.

Beauty Effect

A social phenomenon where individuals perceived as attractive are often given preferential treatment or are judged more favorably.