This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Some financial institutions offer continuous compounding. This means that A) your effective ... (Read 29 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
on: Jul 11, 2018
Some financial institutions offer continuous compounding. This means that
 
  A)
 
  your effective yield will be about 20 higher than daily compounding.
  B)
 
  your effective yield will be only slightly higher than daily compounding.
  C)
 
  in reality they are offering only simple interest.
  D)
 
  you must deposit at least 10,000 to open an account offering this feature.

Question 2

A real interest rate is the interest rate on a fixed-income security that has no risk in an economic
  environment of high inflation.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

johnpizzaz

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

FALSE


sabina

  • Hero Member
  • *****
  • Posts: 563
Reply #2 on: Jul 11, 2018
Thank you :)


johnpizzaz

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jul 11, 2018
Happy to help you


« previous next »
 

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

The average adult has about 21 square feet of skin.

Palpating the thyroid gland from behind the patient is a most effective way of assessing the gland f Palpating the thyroid gland from behind the patient is a most effective way of assessing the gland f
Animal that offer potential medical uses Animal that offer potential medical uses
Financial Management: Core Concepts Financial Management: Core Concepts
Determine if each function is continuous, If the function is not continuous, find the x-axis Determine if each function is continuous, If the function is not continuous, find the x-axis
What rate, compounded once every 3 years, is equivalent to 9% effective rate? What rate, compounded once every 3 years, is equivalent to 9% effective rate?
A comparison of a trait (height) that shows discontinuous and continuous phenotypes in different pla A comparison of a trait (height) that shows discontinuous and continuous phenotypes in different pla
Video: Hemoglobin's affinity with oxygen - carbon dioxide, temperature and bisphosphoglycerate (BPG)

For a complete list of videos, visit our video library