Assume JP Morgan Has a Choice Between Two Deposit Accounts

question 46

Multiple Choice

Assume JP Morgan has a choice between two deposit accounts.Account A has an annual percentage rate of 7.55 percent but with interest compounded monthly.Account B has an annual percentage rate of 7.45 percent with interest compounded continuously.Which account provides the highest effective annual return?

• A)Account A
• B)Account B
• C)Both provide the same effective annual return.
• D)We don't have sufficient information to make a choice.

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Definitions:

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A type of cleaning agent that is used for washing clothes.

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A type of enterprise that aims to earn profit for its owners through its operations and services.

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