Question

Calculate the rate of compounding effects for a customer who experienced 10 conversion periods in a year.

a) Rate = 1/10
b) Rate = 10
c) Rate = 1/2
d) Rate = 1/20

Answer 1

The rate of compounding effects for a customer who experienced 10 conversion periods in a year is 1/10.

Step-by-step explanation:

The rate of compounding effects for a customer who experienced 10 conversion periods in a year can be calculated using the formula:

Rate = 1/n

where n represents the number of conversion periods.

In this case, since the customer experienced 10 conversion periods in a year, the rate of compounding effects would be:

Rate = 1/10

Therefore, option a) Rate = 1/10 is the correct answer.