Q386
Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as
A.
15.00%
AnswerB.
0.60%
C.
10.00%
D.
1.67%
Answer: Option A
Solution
Answer: Option A
Solution:
Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as 15.00% i.e, 3% × 5 = 15.00%.