If the stated annual interest rate is 20% and the frequency of compounding is monthly, the effective annual rate (EAR) is closest to:
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An investor deposits £2,000 into an account that pays continuously compounded interest of 6% (nominal annual rate). The value of the account at the end of four years is closest to:
A. £2,525
B. £2,542
C. £2,854
If two events, A and B, are independent and the probability of A does not equal the probability of B (i.e.,P(A)≠P(B)), then the probability of event A given that event B has occurred (i.e., P(A ∣ B))
A. P(A).
B. P(B).
C. P(B∣A).
For planning purposes, an individual wants to be able to spend €80,000 per year, at the end of each year, for an anticipated 25 years in retirement. In order to fund this retirement account, he will m
A. 29 payments
B. 40 payments
C. 51 payments
An analyst gathers the following information about a companys common stock:·1 January 2011 200,000 shares outstanding·1 June 2011 50,000 shares issued·1 August 2011
A. 333,333.
B. 350,000.
C. 458,333.