You Have $2,500 That You Want to Use to Open

question 306

Multiple Choice

You have $2,500 that you want to use to open a savings account. You have found five different accounts that are acceptable to you. All you have to do now is determine which account you want to use such that you can earn the highest rate of interest possible. Which account should you use based upon the annual percentage rates quoted by each bank? Account A: 3.75%, compounded annually

Account B: 3.70%, compounded monthly
Account C: 3.70%, compounded semi-annually
Account D: 3.65%, compounded continuously
Account E: 3.66%, compounded quarterly

• A) Account A
• B) Account B
• C) Account C
• D) Account D
• E) Account E

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Definitions:

Recourse

A right or legal means to obtain repayment, compensation, or remedy in the event of a breach of contract or agreement.

Achievement Behavior

Actions oriented towards accomplishing specific goals or meeting standards of excellence.

Cultural Difference

The varying beliefs, behaviors, languages, practices, and expressions considered unique to members of a specific ethnicity, society, or nation.