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:

Background

Information or circumstances that provide a setting for an event, statement, or idea, and in terms of which it can be fully understood.

Free-form Slides

Slide designs in presentations that do not follow a specific structure, allowing for more creative and flexible content arrangement.

Structured Slides

Slides organized in a clear, logical manner, often following a specific format to enhance communication and understanding.

Number of Slides

A count of individual pages or screens in a presentation or slideshow.