Question: nominal interest rate is calculated by: a) summing up all the interest rates for all compounding periods b) multiplying the interest rate per compounding period

nominal interest rate is calculated by:

a) summing up all the interest rates for all compounding periods

b) multiplying the interest rate per compounding period by the number of compounding periods per year

c)multiplying the simple interest rate by the number of years

d)converting a given interest rate with a compounding period to an equivalent interest rate with a one year compounding period

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