Multiple Choice
Which of the following investments has the highest effective annual return (EAR) ? (Assume that all CDs are of equal risk.)
A) a bank CD that pays 7.00 percent interest compounded daily
B) a bank CD that pays 7.10 percent compounded monthly
C) a bank CD that pays 7.30 percent annually
D) a bank CD that pays 7.25 percent compounded semiannually
Correct Answer:
Verified
Correct Answer:
Verified
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