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You Are Deciding Among Several Different Bank Accounts

Question 23

Multiple Choice

You are deciding among several different bank accounts. Which of the following will generate the highest effective annual rate (EAR) ?


A) A 10% rate with monthly compounding
B) A 10% rate with annual compounding
C) A 10.5% rate with annual compounding
D) A 10% rate with quarterly compounding

Correct Answer:

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