Your Bank Account Pays Daily Interest with an APR of 4.5%.What

question 8

Multiple Choice

Your bank account pays daily interest with an APR of 4.5%.What is the EAR?

• A)4.0%
• B)4.8%
• C)4.5%
• D)4.6%
• E)4.4%

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Definitions:

Liability Account

An account used in accounting to keep track of obligations or debts that a company owes to others, representing claims against the company's assets by external parties.

Stock Option Plans

Programs established by companies to give employees the right to purchase a specific number of the company's shares at a fixed price for a certain period of time.

Stock Appreciation Rights

A type of incentive or compensation mechanism provided to employees that gives the right to receive a bonus equivalent to the increase in the company’s stock price over a set period.

Compensatory

Refers to something intended to recompense or make up for a loss, injury, or inconvenience.