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

question 8

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) same as the simple rate.
• D) equal to the nominal rate.
• E) lower than the simple rate.

---

Definitions:

Modal Class

The category or class interval in a dataset that appears most frequently.

Histogram

A graphical representation of the distribution of numerical data, often used to visualize the frequency of data within bins.

Observations

Data points or values collected through measurement or research in a study.

Modal Class

The category or interval in a set of data with the highest frequency, often used in analyzing categorical or grouped numerical data.