{"id":43159,"date":"2024-04-15T21:25:29","date_gmt":"2024-04-15T21:25:29","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=43159"},"modified":"2024-04-15T21:25:29","modified_gmt":"2024-04-15T21:25:29","slug":"rate-which-is-divided-by-compounding-periods-to-calculate-periodic-rate-must-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/rate-which-is-divided-by-compounding-periods-to-calculate-periodic-rate-must-be\/","title":{"rendered":"rate which is divided by compounding periods to calculate periodic rate must be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;annuity return&#8221; option2=&#8221;deferred annuity return&#8221; option3=&#8221;nominal rate&#8221; option4=&#8221;semi-annual discount rate&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. nominal rate<\/p>\n<p>The nominal rate is the annual rate of interest that is stated on a loan or investment. It is also called the simple interest rate. The nominal rate is divided by the number of compounding periods in a year to calculate the periodic rate. For example, if the nominal rate is 10% and the compounding period is semi-annual, then the periodic rate is 5%.<\/p>\n<p>The annuity return is the total amount of money that an annuity will pay out over its lifetime. The deferred annuity return is the total amount of money that a deferred annuity will pay out after a certain period of time. The semi-annual discount rate is the interest rate that is used to calculate the present value of a future sum of money that is paid semi-annually.<\/p>\n<p>I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;annuity return&#8221; option2=&#8221;deferred annuity return&#8221; option3=&#8221;nominal rate&#8221; option4=&#8221;semi-annual discount rate&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-43159","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>rate which is divided by compounding periods to calculate periodic rate must be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/rate-which-is-divided-by-compounding-periods-to-calculate-periodic-rate-must-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"rate which is divided by compounding periods to calculate periodic rate must be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;annuity return&#8221; 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