Which Account Would Be Preferred by a Depositor: an 8

question 104

Multiple Choice

Which account would be preferred by a depositor: an 8 percent APR with monthly compounding or 8.5 percent APR with semi-annual compounding?

• A)8 percent with monthly compounding
• B)8.5 percent with semi-annual compounding
• C)The depositor would be indifferent
• D)The time period must be known to select the preferred account (1.0667)¹²-1 = 8.3%
• (1)0425)²-1 = 8.68%

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Definitions:

Differentiated Cell

A cell that has developed and specialized to perform a specific function in the body.

Genes

Sequences of DNA that contain the instructions to build and maintain an organism's cells and pass traits to offspring.

Percent

A measure or ratio expressed as a fraction of 100.