Which of the Following Bank Accounts Has the Highest Effective

question 73

Multiple Choice

Which of the following bank accounts has the highest 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:

Ethical Dilemmas

Situations in which a person is faced with difficult choices between conflicting moral principles or values.

Particular Relationships

Unique or specific connections and interactions between individuals based on personal, familial, or professional ties.

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A mental practice focusing on being acutely aware of what you're sensing and feeling in the moment, without interpretation or judgment.

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Criminologists who focus on maintaining peace and preventing conflict through understanding and addressing the underlying causes of criminal behavior.