What Nominal Rate of Interest-Compounded Quarterly Will Have to Be

question 74

Multiple Choice

What nominal rate of interest-compounded quarterly will have to be earned on a savings account for it to grow from $1525 to $1955 over a period of 21 months?

• A) 14.45%
• B) 15.45%
• C) 12.45%
• D) 3.61%
• E) 10.45%

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Definitions:

Date of Acquisition

The specific date on which control of assets is transferred from the seller to the buyer, marking the point at which the buyer assumes ownership and accounting for the assets.

Common Stock

A type of equity security that represents ownership in a corporation, carrying voting rights and potential for dividends.

Par Value

The nominal or face value of a stock or bond, as stated by the issuer.

Fair Value

An estimate of the market value of an asset or liability, based on current conditions and agreed upon by both buyer and seller.