Which of the Following Bank Accounts Has the Highest Effective

question 117

Multiple Choice

Which of the following bank accounts has the highest effective annual return?

• A)an account that pays 8% nominal interest with monthly compounding
• B)an account that pays 7% nominal interest with daily (365-day) compounding
• C)an account that pays 7% nominal interest with monthly compounding
• D)an account that pays 8% nominal interest with daily (365-day) compounding

Appreciate the role of capital and labor in production costs.

Recognize the implications of opportunity costs on business decisions and personal finance.

Analyze decision-making processes in "how much" and "either-or" scenarios.

Understand the impact of implicit costs on economic profit.

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Definitions:

Wage Adjustment

Modifications or changes made to an employee's pay rate to reflect factors such as market trends, cost of living increases, or performance.

Wage Trend Line

A graphical representation that shows the direction and movement of average wages within a particular sector, industry, or economy over time.

Dollar Scale

A pricing or valuation method that is measured in terms of dollars, often used to assess financial transactions or value objects.

Point Value

A quantifiable measure assigned to tasks, achievements, or roles within a system to indicate their importance or complexity.