Which of the Following Bank Accounts Has the Lowest Effective

question 6

Multiple Choice

Which of the following bank accounts has the lowest effective annual return?

• A) An account that pays 8% nominal interest with daily (365-day)compounding.
• B) An account that pays 8% nominal interest with monthly compounding.
• C) An account that pays 8% nominal interest with annual compounding.
• D) An account that pays 7% nominal interest with daily (365-day)compounding.
• E) An account that pays 7% nominal interest with monthly compounding.

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Definitions:

Dissociation

A psychological experience where a person feels disconnected from their thoughts, feelings, memories, or sense of identity.

Detachment

A state of emotional disconnection or withdrawal, often as a defense mechanism to avoid distress.

Dissociative Disorder

A mental disorder characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Alternating Personalities

A psychological condition, often a symptom of dissociative identity disorder, where an individual shows two or more distinct and alternating personalities, each with its own pattern of perceiving and interacting with the world.