Section I.B.1 Flashcards

1
Q

What are Nominal rates and Effective Rates?

A
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2
Q

What is the effective rate of 12% compounded Quarterly?

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3
Q

What are the methods of Compounding?

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4
Q

What are Nominal Rates of interest and Real Rates of interest?

A
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5
Q

Assume the nominal rate over five years is 8% and the inflation rate is 3%. What is the real return?

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6
Q

What are the types of annuities?

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7
Q

What is Internal Rate of Return?

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