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Periodic rate if it is multiplied with per year number of...

This question belongs to Commerce Financial Management
Financial Management
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Periodic rate if it is multiplied with per year number of compounding periods is called

Answer & Solution
Correct Answer: Option D
Periodic rate if it is multiplied with per year number of compounding periods is called nominal annual rate. The nominal interest rate is the interest rate before taking inflation into account, in contrast to real interest rates and effective interest rates.
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