info@jobexams.pk

The interest rate that accounts for compounding over 12 months is called ____________?

The interest rate that considers compounding throughout the year is called the Effective Annual Return (EAR). It reflects the actual annual yield on an investment after accounting for compounding periods, making it more accurate than the nominal rate.... Read More

1 FINANCE MCQS

The interest rate that accounts for compounding over 12 months is called ____________?

  • Effective annual return
  • Ineffective annual return
  • Decrease in return
  • Increase in return
Correct Answer: A. Effective annual return

Detailed Explanation

The interest rate that considers compounding throughout the year is called the Effective Annual Return (EAR). It reflects the actual annual yield on an investment after accounting for compounding periods, making it more accurate than the nominal rate.

Related Questions

Finance MCQs
In cash flow analysis, two projects are compared using a common life approach, which is classified as…
0 comments
View
Finance MCQs
Other factors held constant, a project with lesser liquidity is usually due to ____________?
0 comments
View
Finance MCQs
In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…
0 comments
View
Finance MCQs
In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…
0 comments
View

Discussion

Thank you for your comment! Our admin will review it soon.
No comments yet. Be the first to comment!

Leave a Comment

Question Categories
General Knowledge Category MCQ'S
Computer Category MCQ'S
Chemistry Category MCQ'S
Pak Departmental Laws & Rules MCQs