The Effective Yield Is the Annual Rate I That Will

question 377

Multiple Choice

The effective yield is the annual rate i that will produce the same interest per year as the nominal rate compounded n times per year.For a rate that is compounded n times per year,the formula for effective yield is given as Find the effective yield for a nominal rate of 9%,compounded monthly.Round your answer to two decimal places. ​

• A) ​0.94%
• B) ​9.62%
• C) ​10.01%
• D) ​1.50%
• E) ​9.38%

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Definitions:

Repetitive Stimuli

Stimuli that are presented repeatedly, which can lead to various psychological effects such as habituation or sensitization.

Energy Conservation

The practice of reducing energy consumption through using less of an energy service and efficient energy usage.

Dishabituation

Increase in responsiveness after presentation of a new stimulus.

Habituation

The method through which a person becomes used to a stimulus by being exposed to it multiple times, resulting in a reduced reaction.