A Bank Offers an Account with an APR of 6

question 84

Multiple Choice

A bank offers an account with an APR of 6% and an EAR of 6.09%.How does the bank compound interest for this account?

• A)weekly compounding
• B)monthly compounding
• C)semi-annual compounding
• D)annual compounding
• E)daily compounding

---

Definitions:

Accumulated Other Comprehensive Income

The cumulative effects of other comprehensive income items reported separately in the Stockholders’ Equity section of the balance sheet.

Long-Term Investments

Assets intended to be held for more than one fiscal year, including bonds, stocks, or real estate, aiming for future returns.

Reduce Expenses

A financial strategy aimed at decreasing costs to increase profitability.

Stabilize Supply

Actions or strategies implemented to ensure a consistent and reliable supply of goods, preventing shortages or excessive inventory.