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:

Hair Cells

Sensory cells found in the inner ear that are critical for hearing and balance, converting mechanical sound vibrations into electrical signals.

Permanent Hearing Loss

A lasting inability to hear partially or completely in one or both ears, which can result from genetic factors, aging, exposure to loud noise, or certain diseases.

Basilar Membrane

A membrane in the cochlea of the inner ear that vibrates in response to sound and plays a key role in the sense of hearing.

Auditory Information

Data or knowledge received and processed through the sense of hearing.