What Is the Nominal Rate of Interest at Which Money

question 2

Multiple Choice

What is the nominal rate of interest at which money will be 5 times itself in 20 years and six months if compounded semi-annually?

• A) 0.04%
• B) 4%
• C) 48%
• D) 8%
• E) 4.61%

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Definitions:

Service Providers

Companies or individuals that offer services to others in exchange for payment.

Delivery Gap

The discrepancy between a company’s service quality specification and the actual service delivered to customers, often leading to customer dissatisfaction.

Communication Gap

A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises.

Communication Gap

The difference or misunderstanding that occurs when the message sent is not interpreted by the receiver in the way that the sender intended.