When using the effective rate in calculations,
A)we need to apply annual compounding.
B)we need to know the actual compounding frequency.
C)we get an approximation of the actual value.
D)we get a different result compared to calculations made with the nominal rate and the actual compounding frequency.

Question

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The Answer of When using the effective rate in calculations,
A)we need to apply annual compounding.
B)we need to know the actual compounding frequency.
C)we get an approximation of the actual value.
D)we get a different result compared to calculations made with the nominal rate and the actual compounding frequency.

When Using the Effective Rate in Calculations