Which of the Following Accounts Has the Highest EAR

question 88

Multiple Choice

Which of the following accounts has the highest EAR?

• A) one that pays 6.1% every six months
• B) one that pays 3% every three months
• C) one that pays 1.0% per month
• D) one that pays 12.6% per year

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Definitions:

Positive Correlation

A statistical relationship where two variables move in tandem; as one variable increases, the other does as well.

Bivariate

Involving or dependent on two variables, often used in statistical analyses to examine the relationship between two sets of data.

Continuous Variables

Variables that can take an infinite number of values within a given range.

Product-moment

A statistical measure of the linear correlation between two variables, often expressed as Pearson's correlation coefficient.