Which of the Following Bank Accounts Has the Lowest Effective

question 31

Multiple Choice

Which of the following bank accounts has the lowest effective annual return?

• A) An account that pays 8% nominal interest with monthly compounding.
• B) An account that pays 8% nominal interest with annual compounding.
• C) An account that pays 7% nominal interest with daily (365-day)compounding.
• D) An account that pays 7% nominal interest with monthly compounding.
• E) An account that pays 8% nominal interest with daily (365-day)compounding.

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Definitions:

HRM Practices

Human Resource Management strategies and practices focused on the management and development of an organization's workforce, including recruiting, training, performance evaluation, and compensation.

Society for Human Resource Management

A professional organization dedicated to the advancement of human resource management practices and the professional development of HR practitioners.

HR Association

An organization that represents the interests of Human Resource professionals, offering resources, education, and networking opportunities.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.