Which of the Following Bank Accounts Has the Lowest Effective

question 70

Multiple Choice

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

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

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Alopecia

Partial or complete loss of hair; baldness.

Edentulous

A condition characterized by the lack of teeth in an individual's mouth, which can affect their ability to eat and speak.

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A progressive neurological disorder characterized by memory loss, cognitive decline, and changes in behavior, leading to impairment in daily functioning.

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The mouth or the hollow space inside the mouth, including structures such as the lips, tongue, teeth, gums, and the beginning of the throat, important for speech, eating, and breathing.