If the Nominal Rate of Interest Paid on a Savings

question 75

Short Answer

If the nominal rate of interest paid on a savings account is 3% per annum compounded monthly, what is the effective rate of interest paid?

---

Definitions:

Border States

Refers to the slave states that did not secede from the Union during the American Civil War, namely Delaware, Maryland, Kentucky, and Missouri.

Emancipation Proclamation

A historic executive order issued by President Abraham Lincoln in 1863 that declared the freedom of all enslaved people in Confederate states.

Officially Take Effect

When something is said to officially take effect, it means it begins to legally or formally be applied or enforced from a specified moment.

January 1, 1863

The date when the Emancipation Proclamation was officially issued by President Abraham Lincoln, declaring the freedom of all slaves in Confederate territory.