Which Account Would Be Preferred by a Depositor: an 8

question 81

Multiple Choice

Which account would be preferred by a depositor: an 8% APR with monthly compounding or 8.5% APR with semiannual compounding?

• A) 8.0% with monthly compounding.
• B) 8.5% with semiannual compounding.
• C) The depositor would be indifferent.
• D) The time period must be known to select the preferred account.

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Definitions:

Accept

Agreement to the terms of a proposal or offer, thereby creating a binding contract between the parties involved.

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A research method in which questionnaires are sent through postal mail to collect data from respondents.

Prizes

Rewards given for a particular achievement, competition, or lottery, often in the form of money, goods, or titles.

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Legal responsibility for one's actions or omissions, which may result in being required to compensate for harm or damage caused.