An interest rate of 2% per quarter, compounded continuously, is closest to an effective semiannual rate of:
(a) 2.00% per semiannual period
(b) 2.02% per semiannual period
(c) 4.0% per semiannual period
(d) 4.08% per semiannual period
r = 2% per quarter = 4% per 6-mth period
i /6-mths = e0.04 -1 = 4.08% per semi
Answer is (d) 4.08% per semiannual period
You might also like to view...
What characteristics make certain plants more appropriate for bonsai planting
than others?
What will be an ideal response?The welding wire conduit must be securely attached to the gas diffuser and ____ to prevent wire jams caused by misalignment.
A. solenoid B. gun lead C. contact tube D. power source
All of the following are popular choices for bird hunting except:
a. Quail c. Pheasant b. Ostrich d. Turkey
On architectural floor plans, the center-to-center dimensions between structural steel columns make up the _______________.
Fill in the blank(s) with the appropriate word(s).