An Investment Has the Following Interest Rates: J₄ = 8

question 97

Multiple Choice

An investment has the following interest rates: j₄ = 8% for the first 2-years,followed by j₂ = 8% for the next 4-years,followed by j₁₂ = 6% for the last 28-months.What is the equivalent nominal rate of interest,compounded 3 times a year,j₃,earned over this time period of 100 months?

• A)9.99%
• B)7.43%
• C)5.56%
• D)11.31%

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Definitions:

Active Immunity

Immunity that develops as a result of exposure to antigens; it can occur naturally after recovery from a disease or can be artificially induced by immunization with a vaccine. Compare with passive immunity.

Passive Immunity

Temporary immunity that depends on the presence of immunoglobulins produced by another organism. Compare with active immunity.

B Cells

A type of white blood cell that plays a crucial role in the body's immune response by producing antibodies.

Antibodies

Proteins generated by the immune system that specifically bind to foreign substances, such as bacteria and viruses, to help in their neutralization or destruction.