Multiple Choice
Which of the following bank accounts has the highest effective annual return?
A) An account that pays 8% nominal interest with daily (365-day) compounding.
B) An account that pays 8% nominal interest with monthly compounding.
C) An account that pays 8% nominal interest with annual compounding.
D) An account that pays 7% nominal interest with daily (365-day) compounding.
E) An account that pays 7% nominal interest with monthly compounding.
Correct Answer:
Verified
Correct Answer:
Verified
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