An interest rate expressed as if it were compounded once per year is called the Multiple Choice periodic interest rate compound interest rate stated annual rate daily interest rate effective annual rate 2 Which one of the following statements concerning Interest rates is correct? 0.66 points Multiple Choice Skipped The stated rate is the same as the effective annual rate eBook Print Banks are most apt to prefer more frequent compounding on their savings accounts. References The annual percentage rate increases as the number of compounding periods per year increases. An effective annual rate is the rate that applies if interest were charged annually For any positive rate of interest, the effective annual rate will always exceed the annual percentage rate. The highest effective annual rate that can be derived from an annual percentage rate of 9 percent is computed as 066 Multiple Choice Sped .69.1 to Print -09 (1/.09) -09-1 (1 +.09) -7.17 am 4 You will be receiving $3,000,000 one year from now. What is the present value of this amount at a discount rate of 9.24 percent? 0.66 points Multiple Choice Skoped O $8,663,663 eBook Print $3.031.524 O References $2,642,698 O $2,746,247 O $B6637 O 7:17 am 5 This morning, you invested your tax refund of $910 at an interest rate of 11.3 percent, compounded annually. How much will this investment be worth 30 years from now? 066 points Multiple Choice $22589 ODOO Print $26.954 Deferences o $43164 $95 914 o $191849 7:17 am