10
QuizMultiple Choice

Interest Rates

Question 10 • Financial Math B - MA2007

When calculating the effective rate of a loan, which statement or statements must be true if n is equal to 1?I. The nominal rate equals the effective rate.II. The length of the loan is exactly one year.III. The interest is compounded annually.a.I and IIIb.II and IIIc.I onlyd.III only

Answer
A
A
B
B
C
C
D
D
When calculating the effective rate of a loan…