The R&M Bank Has Offered You the Choice Between Two $\bullet$

question 7

Multiple Choice

The R&M Bank has offered you the choice between two investment accounts:
$\bullet$ #1 pays interest at a rate of 12% compounded semi-annually.
$\bullet$ #2 pays interest at a rate of 11% compounded monthly.
Which investment account do you prefer and why?

• A)#1, 12% is greater than 11%
• B)#2, greater compounding frequency
• C)#1, higher effective rate
• D)#2, higher effective rate

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Definitions:

Preorder Processing

A type of tree traversal where each node is processed before its child nodes.

Root Node

The topmost node in a tree data structure, from which all other nodes descend.

Left Subtree

In tree data structures, particularly binary trees, it refers to the subtree that is rooted at the left child of a node.

Link Instance Variable

A variable within an object that refers to another object, typically used in linked structures like linked lists to connect elements together.