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:

Community Information

Data or knowledge about a specific group of people that shares a common interest or location.

Theory Of Mind

Describes the ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and to others, and understand that others have beliefs and perspectives different from one's own.

False Belief

An erroneous understanding or conviction about something that does not align with factual reality.

Mental Processes

Cognitive activities and functions of the mind such as thinking, understanding, learning, and remembering.