Use the Table for the Question(s)below

question 45

Multiple Choice

Use the table for the question(s) below.
Consider the following investment alternatives:
-The highest effective rate of return you could earn on any of these investments is closest to:

• A)6.250%.
• B)6.267%.
• C)6.295%.
• D)6.310%.

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Definitions:

Interest Rates

The cost of borrowing money or the return on savings, typically expressed as a percentage.

Trade Surpluses

An economic condition that occurs when a country's exports exceed its imports over a certain period of time, indicating a positive balance of trade.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Foreign Exchange Gain

A financial benefit resulting from changes in exchange rates, enhancing the value of foreign currency assets upon conversion.