PRC-2 · Chapter 4 · Question 44 of 60
If the nominal rate is 12% and compounding is monthly, what is the 'periodic rate' used in calculations?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 1%
Explanation
The periodic rate is the annual nominal rate divided by the number of compounding periods in a year. 12% / 12 months = 1% per month.
More Linear Programming MCQs
- Q46A matrix with the same number of rows as columns (e.g., 2x2 or 3x3) is known as a:
- Q47A square matrix where all diagonal elements are 1 and all other elements are 0 is called a/an:
- Q48What is the condition for two matrices, A and B, to be 'conformable' for addition (A + B)?
- Q49What is the condition for two matrices, A and B, to be conformable for *multiplication* (A × B)?
- Q50If the determinant of a square matrix A is exactly zero (|A| = 0), the matrix is formally called: