Which of These Savings Rates Is Most Favorable

question 85

Multiple Choice

Which of these savings rates is most favorable?

• A) 5% compounded annually
• B) 4.9% compounded monthly
• C) 4.8% compounded quarterly
• D) 4.8% continuously compounded

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Definitions:

Cognitive Dissonance

The feeling of discomfort caused by holding conflicting beliefs or values, or by acting in contradiction to one's beliefs.

Self-Monitoring

The tendency to regulate behavior to meet the demands of social situations.

Minimize Mistakes

The process or effort to reduce the number or severity of errors in a particular activity or process.

Romantic Ideals

Elevated and often unrealistic expectations about romantic relationships, emphasizing passion, commitment, and emotional intimacy.