What is the rate of simple interest that would realize exactly as much as interest over the same period?
A) real interest rate
B) actual interest rate
C) effective rate
D) annual percentage rate (APR)

Question

Quizplus · Accepted Answer

The rate of simple interest that would realize exactly as much as interest over the same period is called the effective rate. This takes into account the compounding of interest over time, while the other options do not. The real interest rate refers to the inflation-adjusted return on an investment, the actual interest rate is simply the stated rate of interest, and the APR is typically used for loans and includes any fees or charges associated with the loan. Therefore, the correct answer is C - effective rate.

What Is the Rate of Simple Interest That Would Realize