Which of the Following Investments Has the Highest Effective Annual

question 144

Multiple Choice

Which of the following investments has the highest effective annual return (EAR) ? (Assume that all CDs are of equal risk.)

• A) A bank CD that pays 7.00 percent interest compounded daily.
• B) A bank CD that pays 7.10 percent compounded monthly.
• C) A bank CD that pays 7.30 percent annually.
• D) A bank CD that pays 7.25 percent compounded semiannually.

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The expression of thoughts and feelings by articulated sounds or words, a primary means of human communication.

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Garden Path Sentences

Sentences that begin in such a way that a reader's most likely interpretation will be incorrect and will need to be revised upon reaching the end of the sentence.

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Scientists who study the psychological and neurobiological factors that enable humans to acquire, use, comprehend and produce language.