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    Exam Name: CTFL4
    Vendor: ISTQB Certified Tester Foundation Level CTFL 4.0

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    Answer: C

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    The semiannually compounded rate is 10% quoted on an annualized basis. The equivalent annually compounded rate is:
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    Answer: D
    Explanation:
    Explanation/Reference:
    Explanation:
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    2 = 1.1025. Since these two should be equal, we get 1+r
    1.1025, giving r = 10.25%. Note that the annually compounded rate must be larger than the semiannually rate, ruling out 9.65 automatically.

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