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What the effective annual rate is defined as interest rate

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Reference no: EM132739963

Problem 1: The effective annual rate is defined as the interest rate that is:

a. equal to a monthly rate multiplied by twelve

b. expressed as if it were compounded once per year

c. computed by multiplying the rate per period by the number of periods per year

d. compounded at regular intervals throughout the year

e. compounded more frequently than once per year

Reference no: EM132739963

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