Which of the Following Bank Accounts Has the Lowest Effective

question 157

Multiple Choice

Which of the following bank accounts has the lowest effective annual return?

• A) an account that pays 8% nominal interest with daily (365-day) compounding.
• B) an account that pays 8% nominal interest with monthly compounding.
• C) an account that pays 8% nominal interest with annual compounding.
• D) an account that pays 7% nominal interest with daily (365-day) compounding.
• E) an account that pays 7% nominal interest with monthly compounding.

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Definitions:

Bronfenbrenner

Bronfenbrenner is a developmental psychologist who formulated the Ecological Systems Theory, which describes how different layers of the environment influence an individual's development.

Bioecological Model

A theoretical model that emphasizes the importance of biological systems and the ecological environment in the development of individuals, proposed by Urie Bronfenbrenner.

Microsystems

Microsystems are immediate environments or contexts in which an individual actively participates, such as family, school, or peer groups, influencing their development.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a hierarchy of human needs, from basic physiological needs to self-actualization.