Find the Effective Rate of Interest Corresponding to a Nominal

question 203

Multiple Choice

Find the effective rate of interest corresponding to a nominal rate of 6%/year compounded annually, semiannually, quarterly, and monthly. ​

• A) The effective rate of interest corresponding to a nominal rate of 6%/year is
• 6)00% if compounded annually,
• 6)04% if compounded semi-annually,
• 6)59% if compounded quarterly,
• 5)00% if compounded monthly.
• ​
• B) The effective rate of interest corresponding to a nominal rate of 6%/year is
• 6)00% if compounded annually,
• 6)59% if compounded semi-annually,
• 5)00% if compounded quarterly,
• 6)17% if compounded monthly.
• ​
• C) The effective rate of interest corresponding to a nominal rate of 6%/year is
• 6)00% if compounded annually,
• 6)09% if compounded semi-annually,
• 6)14% if compounded quarterly,
• 6)17% if compounded monthly.
• ​

---

Definitions:

Empathy

The ability to understand and share the feelings of another person.

Selective Abstraction

A cognitive bias in which an individual focuses on a single negative detail or event, excluding other relevant positive information.

Transference

A phenomenon in psychoanalysis where patients unconsciously project their feelings or expectations from past relationships onto their therapist.

Psychological Problems

Issues or disorders related to the mind that can affect mood, behavior, and thinking, often requiring professional assessment and treatment.