For a Five-Year GIC Investment, What Monthly Compounded Nominal Rate

question 136

Multiple Choice

For a five-year GIC investment, what monthly compounded nominal rate would put you in the same financial position as 8% compounded semiannually?

• A) 8.02%
• B) 8.16%
• C) 7.84%
• D) 8.21%
• E) 7.87%

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Definitions:

Logical Decision

The process of making a choice based on logical conditions or comparisons in programming or digital circuits.

Alternating Current

An electric current that periodically reverses direction, in contrast to direct current (DC) that flows only in one direction.

Direct Current

A type of electrical current where the flow of electric charge is in one direction, commonly used in low voltage applications.

NOR Function

A logical operation that outputs true only if all inputs are false, used in digital electronics and computer programming.