Which of the Following Accounts Has the Highest EAR

question 84

Multiple Choice

Which of the following accounts has the highest EAR?

• A) one that pays 5.4% every six months
• B) one that pays 1.0% per month
• C) one that pays 9.6% per year
• D) one that pays 2.4% every three months

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Definitions:

Intervening Cause

A legal term for an event that occurs after a party's initial act of negligence and contributes to a harmful event without breaking the causal link between the negligent act and the harm.

Reasonable Person Standard

A legal standard used to determine how an average person with ordinary prudence would act in certain circumstances.

Plaintiff

The party that initiates a lawsuit by filing a complaint against the defendant for legal redress.

Negligence

A failure to exercise the level of care that someone of ordinary prudence would have exercised in similar circumstances, leading to harm or damage.