Shylock Bank offers a savings account with a nominal rate of 9 and quarterly compounding. What is the effective rate of the account?
A) 9.31
B) 9.00
C) 9.20
D) 9.42
E) 8.63
Question 2
Which of the following sources of short-term financing is likely to have the lowest interest rate?
A) commercial paper
B) accounts receivable loan (pledging of accounts receivable)
C) line of credit
D) line of credit with a compensating balance