Some Financial Institutions Offer Continuous Compounding.This Means That

question 2

Multiple Choice

Some financial institutions offer continuous compounding.This means that

• A)your effective yield will be about 20% higher than daily compounding.
• B)your effective yield will be only slightly higher than daily compounding.
• C)in reality they are offering only simple interest.
• D)you must deposit at least $10,000 to open an account offering this feature.

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Definitions:

Foreign Language

A language that is not the native language of the speaker, but that is used in the area where they are living or is commonly studied as a second language.

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The loss or weakening of memory over time, often due to the aging process or lack of mental stimulation.

Levels-Of-Processing Principle

A theory in cognitive psychology suggesting that the depth (shallow to deep) of mental processing affects memory recall, with deeper levels of processing leading to longer-lasting memory retention.

Retroactive Interference

The process by which new information impairs the retrieval of previously learned information.