Find the Nominal Interest Rate That, When Compounded Continuously, Yields

question 173

Multiple Choice

Find the nominal interest rate that, when compounded continuously, yields an effective interest rate of 20% / year.

• A) 18.232%
• B) 19.089%
• C) 18.237%
• D) 18.654%

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Definitions:

American Laborers

Describes workers in the United States, typically focused on manual or industrial work, integral to the development of the nation's economy.

Organized Labor

Workers united in trade unions, engaging collectively in negotiations and actions aimed at improving their working conditions, wages, and rights.

American Draftees

Individuals conscripted into the military service of the United States, especially during periods of war when voluntary enlistment does not meet the needs of the armed forces.

Virtue

A trait or quality deemed to be morally good or desirable in a person, including honesty, integrity, courage, and kindness.