You Have $2,500 That You Want to Use to Open

question 127

Multiple Choice

You have $2,500 that you want to use to open a savings account.You have found five different accounts that are acceptable to you.All you have to do now is determine which account you want to use such that you can earn the highest rate of interest possible.Which account should you use based upon the annual percentage rates quoted by each bank? $$\begin{array} { l l } \text { Account A: } & \text { 3.75\%, compounded annually } \\\text { Account B: } & 3.70 \% , \text { compounded monthly } \\\text { Account C: } & 3.70 \% , \text { compounded semi-annually } \\\text { Account D: } & \text { 3.65\%, compounded continuously } \\\text { Account E: } & 3.66 \% , \text { compounded quarterly }\end{array}$$

• A)Account A
• B)Account B
• C)Account C
• D)Account D
• E)Account E

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Definitions:

Dependent-Samples T Test

A statistical test used when comparing the means of two related groups to determine if there are statistically significant differences.

Same Group

Refers to a single group of subjects that is used in an experimental study where each subject receives all treatments; also known as a within-subjects design.

Two Conditions

A situation in experiments where participants are subjected to one of two different states or treatments to investigate the effects on a dependent variable.

Correlation

A statistical measure that describes the extent to which two variables change together.