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