Over a given year the force of interest p.a is a linear function of time, falling from 0.15 at the start of the year to 0.12 at the end of the year. The value at the start of the year of the nominal rate of interest per annum on a transaction of 1 month term is: Select one: a. 0.28 O b.0.14 c. 0.07 d. 0.21

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Over a given year the force of interest p.a is a linear function
of time, falling from 0.15 at the start of the year to 0.12 at the
end of the year. The value at the start of the year of the
nominal rate of interest per annum on a transaction of 1
month term is:
Select one:
a. 0.28
O b.0.14
c. 0.07
d. 0.21
Transcribed Image Text:Over a given year the force of interest p.a is a linear function of time, falling from 0.15 at the start of the year to 0.12 at the end of the year. The value at the start of the year of the nominal rate of interest per annum on a transaction of 1 month term is: Select one: a. 0.28 O b.0.14 c. 0.07 d. 0.21
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