ECO 1192 Study Guide - Final Guide: Cash Flow, Mansfield, Investment
Document Summary
If the rate of interest is 12% compounded quarterly, the nominal rate of interest (annual) is: 12, 12. 55, 3, none of the above answers. You are asked to determine the economic validity of projects a and b using the. Is a common period of analysis necessary to arrive at this decision: yes, no. If the rate of interest is 12% compounded quarterly, the effective rate of interest (annual) is: 12, 12. 55, 3, none of the above answers. The nominal rate of interest will exceed the effective rate of interest when: simple interest is used, compounding tends to infinity, when the nominal rate exceeds 28, none of the above answers. Which nominal rate of interest compounded annually is equivalent to an actual quarterly rate of 2%: 8, 2, 8. 9% October 2006: none of the above answers. If the rate of interest is 12% compounded annually, the effective rate of interest is: 12, 3, 1, 12. 55%
