What Is the Monthly Discount Rate Expressed as an Nominal

question 42

Multiple Choice

What is the monthly discount rate expressed as an nominal annual rate for a future value of $182 500 to be reduced to $178 663.58 over a period of 4.25 years?

• A) 4.06%
• B) 8.04%
• C) 6.88%
• D) 4.88%
• E) 0.50%