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If an Investment Earns 12% Annually

Question 23

Multiple Choice

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 relation cannot be determined between a monthly and annual investment

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