Multiple Choice
You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of interest?
A) bank 1; 6.1% with annual compounding.
B) bank 2; 6.0% with monthly compounding.
C) bank 3; 6.0% with annual compounding.
D) bank 4; 6.0% with quarterly compounding.
E) bank 5; 6.0% with daily (365-day) compounding.
Correct Answer:
Verified
Correct Answer:
Verified
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