What Is the Quarterly Compounded Nominal Rate That Is Equivalent

question 5

Multiple Choice

What is the quarterly compounded nominal rate that is equivalent to 18% compounded monthly?

• A) 18.53%
• B) 17.84%
• C) 16.89%
• D) 18.64%
• E) 18.27%

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Definitions:

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.

School Performance

A measurement of academic achievement usually based on grades, standardized test scores, and other criteria.

Unknown Validity

A term indicating that the effectiveness, accuracy, or effect of something cannot be verified or confirmed.

Wide Distribution

The extensive spreading of something, such as a product, phenomenon, or piece of information, across a large area or amongst a large number of people.