Which of the Following Accounts Has the Highest EAR

question 1

Multiple Choice

Which of the following accounts has the highest EAR?

• A)one that pays 6.1% every six months
• B)one that pays 1.0% per month
• C)one that pays 12.6% per year
• D)one that pays 3% every three months
• E)one that pays 0.2% per week

---

Definitions:

Controlling Influence

The power to govern the financial and operating policies of an entity to benefit from its activities.

Parent

In the context of business, a parent company is one that owns enough voting stock in another corporation to control its board of directors and therefore its operations and policies.

Subsidiary

A company controlled by another company, known as the parent company, through the ownership of more than half of its voting stock.

Voting Stock

Refers to shares that give the holder the right to vote on corporate matters, such as electing the board of directors.