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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Definitions:

Neonatal Thrombocytopenia

A condition in newborns characterized by a lower than average number of platelets in the blood, which can lead to bleeding problems.

Exchange Transfusion

A blood transfusion process where the patient's blood or components are removed and replaced with donor blood or plasma.

Average Adult

A reference to the common or typical characteristics, such as age, size, or health, of an adult person in a certain population.

Agglutination

The clumping together of particles, often used to refer to the clumping of cells or particles in response to antibodies or antigens.