From the following extract of an amortisation schedule pertaining to a compound financial instrument,what is the effective-interest rate embodied in the instrument?
A) 6 per cent.
B) 5 per cent.
C) Variable, as shown in the table it has increased from 5.5837 per cent in period 1 to 6.2738 per cent in period 3.
D) 4 per cent.
E) Cannot determine from the above information.

Question

From the following extract of an amortisation schedule pertaining to a compound financial instrument,what is the effective-interest rate embodied in the instrument? 
A) 6 per cent. 
B) 5 per cent. 
C) Variable, as shown in the table it has increased from 5.5837 per cent in period 1 to 6.2738 per cent in period 3. 
D) 4 per cent. 
E) Cannot determine from the above information.

Quizplus · Accepted Answer

The Answer of From the following extract of an amortisation schedule pertaining to a compound financial instrument,what is the effective-interest rate embodied in the instrument? 
A) 6 per cent. 
B) 5 per cent. 
C) Variable, as shown in the table it has increased from 5.5837 per cent in period 1 to 6.2738 per cent in period 3. 
D) 4 per cent. 
E) Cannot determine from the above information.

From the Following Extract of an Amortisation Schedule Pertaining to a Compound