Register
Titan State Bank offers to pay you 6% interest, compounded quarterly. The 6% interest rate is known as the: ANSWER Unselected real rate of interest Unselected nominal interest rate Unselected EAR Unselected
34.1k views
5 votes
Titan State Bank offers to pay you 6% interest, compounded quarterly. The 6% interest rate is known as the: ANSWER Unselected real rate of interest Unselected nominal interest rate Unselected EAR Unselected rate of inflation

User High
by
5.3k points

1 Answer

1 vote

Answer:

nominal interest rate

Step-by-step explanation:

Titan State Bank offer of 6% interest is a quoted interest rate. A quoted interest rate is also annual payable rate (APR) and in this case, it is compounded quarterly. Additionally, since this quoted rate does not take into account the inflation rate, it is referred as a Nominal interest rate. However, when that nominal rate of 6% is adjusted for inflation, the rate you earn is the Real interest rate which you calculate using the Fisher equation.

User Dmytro Danylyk
by
5.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.5m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!