Your Bank Account Pays Quarterly Interest with an EAR of 7%.What

question 91

Multiple Choice

Your bank account pays quarterly interest with an EAR of 7%.What amount of interest will you earn each quarter?

• A)1.80%
• B)1.75%
• C)1.70%
• D)1.50%
• E)2.00%

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Definitions:

Debit Card

A payment card that deducts money directly from a consumer's checking account to pay for a purchase.

Hedge Fund

A Hedge Fund is a private investment fund that uses complex strategies in both domestic and international markets with the goal of generating high returns.

Nondepository Financial Institution

Financial entities that do not accept traditional deposits like a bank, but may offer other financial services such as investment, insurance, and retirement plans.

Market Order

Order that instructs the investor’s broker to obtain the best possible price.