You Have $5,600 That You Want to Use to Open

question 111

Multiple Choice

You have $5,600 that you want to use to open a savings account.There are five banks located in your area.The rates paid by banks A through E,respectively,are given below.Which bank should you select if your goal is to maximize your interest income?

• A)4.61 percent, compounded annually
• B)4.15 percent, compounded monthly
• C)4.57 percent, compounded semi-annually
• D)4.10 percent, compounded continuously
• E)4.25 percent, compounded quarterly