A Bank Offers an Account with an APR of 5

question 47

Multiple Choice

A bank offers an account with an APR of 5.8% and an EAR of 5.88%. How does the bank compound interest for this account?

• A) weekly compounding
• B) monthly compounding
• C) semiannual compounding
• D) annual compounding

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Definitions:

Interest Inventory

An assessment that measures a person's interests in various fields of work or activity, to guide career planning or educational decisions.

Multiple Aptitude Test

A type of assessment designed to measure a range of abilities and skills in order to evaluate academic potential or career suitability.

Special Aptitude Tests

Exams designed to measure specific skills or abilities in areas such as music, art, or mechanics, often used for educational or career guidance.

Recreational

Pertaining to activities done for enjoyment, leisure, or relaxation outside of one's professional or work-related duties.