Answered: If the interest rate is stated as 2.2%…

If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual interest rate is closest to: Select one: a. 3.4%. b. 4.5%. c. 2.22%. d. 3.45%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 45P

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Question

Q23

If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual
interest rate is closest to:
Select one:
a. 3.4%.
b. 4.5%.
c. 2.22%.
d. 3.45%.

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