Find the Effective Rate Corresponding to the Given Nominal Rate

question 218

Multiple Choice

Find the effective rate corresponding to the given nominal rate. Round your answers to two decimal places. 15% / year compounded semiannually _____%
9% / year compounded quarterly _____%

• A) 9.31%, 9.38%
• B) 9.38%, 9.42%
• C) 15.56%, 9.31%
• D) 9.31%, 9.42%

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Definitions:

Internal Reaction

The psychological and emotional response of an individual to external stimuli or events.

External Force

Influences originating outside an individual or system that can affect behaviors, decisions, or change trajectories.

Conscientious

A personality trait characterized by being diligent, careful, meticulous, and responsible.

Perfection

The state or condition of being free from any flaws or defects.