If an investment earns 12% annually: (A) An equivalent monthly investment would
ID: 2637741 • Letter: I
Question
If an investment earns 12% annually:
(A) An equivalent monthly investment would have to earn a higher equivalent nominal rate to yield the same return
(B) An equivalent monthly investment would have to earn a lower equivalent nominal rate to yield the same return
(C) An equivalent monthly investment would have to earn the same equivalent nominal rate to yield the same return
(D) A relationship cannot be determined between a monthly and annual investment
(A) An equivalent monthly investment would have to earn a higher equivalent nominal rate to yield the same return
(B) An equivalent monthly investment would have to earn a lower equivalent nominal rate to yield the same return
(C) An equivalent monthly investment would have to earn the same equivalent nominal rate to yield the same return
(D) A relationship cannot be determined between a monthly and annual investment
Explanation / Answer
(D) A relationship cannot be determined between a monthly and annual investment