Answer:
No, Kareem is incorrect.
Step-by-step explanation:
Kareem says that the ratio of because 4 + 8 = 12 and 1 + 8 = 9
But the correct way to rewrite the ratio 4 : 1 is,
Which becomes as,
Therefore, Kareem is not correct.
Correct ratio equivalent to 4 : 1 is 12 : 3.
Answer:
C. It will increase by about 0.6%
Step-by-step explanation:
Since, the effective interest rate is,
Where, i is the stated interest rate,
n is the number of compounding periods,
Here, i = 11.28 % = 0.1128,
n = 365 ( 1 year = 365 days ),
Hence, the effective interest rate would be,
=0.119388521952
Now, the changes in effective interest rate = Effective interest rate - Stated interest rate
= 0.119388521952 - 0.1128
= 0.006588521952 ≈ 0.006 = 0.6 %
Hence, It will increased by about 0.6 %,
Option A is correct.
Hope this helps :)