Multiple Choice
You are deciding among several different bank accounts. Which of the following will generate the highest effective annual rate (EAR) ?
A) a 6 percent rate with monthly compounding
B) a 6 percent rate with annual compounding
C) a 6.08 percent rate with annual compounding
D) a 6 percent rate with quarterly compounding
Correct Answer:
Verified
Correct Answer:
Verified
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