Assume Julian Has a Choice Between Two Deposit Accounts

question 99

Multiple Choice

Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with interest compounded monthly. Account B has an annual percentage rate of 7.45 percent with interest compounded continuously. Which account provides the highest effective annual return?

• A) Account A
• B) Account B
• C) Both provide the same effective annual return
• D) We don't have sufficient information to make a choice

---

Definitions:

Social Relations

The interactions and connections among individuals within a society, shaping each other's behaviors, attitudes, and social structures.

Material Success

The accumulation of tangible wealth and possessions that are often seen as indicators of one's status or success in society.

Expectations

Socially constructed assumptions about how individuals should behave or what outcomes should occur in specific contexts.

Class Status

The ranking of an individual or group in a hierarchical social structure, often based on wealth, profession, education, or lineage.