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Finance company providing loans at 3 with five compounding periods per...

This question belongs to Commerce Financial Management
Financial Management
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Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as

Answer & Solution
Correct Answer: Option A
Finance company providing loans at 3% with five compounding periods per year, nominal annual rate is classified as 15.00% i.e, 3% × 5 = 15.00%.
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