Bank One Offers a Passbook Account with a 4

question 193

Multiple Choice

Bank One offers a passbook account with a 4.75% annual rate, compounded quarterly.Bank Two offers a money market account at 4.5%, compounded monthly.Find the better growth by calculating the
Effective rates.What is the greater effective rate?

• A)4.59%
• B)0.05%
• C)0.05%.
• D)4.84%
• E)none of the above