Which Is the Most Attractive of the Following Interest Rates

question 39

Multiple Choice

Which is the most attractive of the following interest rates offered on a savings account?

• A) 2.7% compounded annually
• B) 2.68% compounded semiannually
• C) 2.66% compounded quarterly
• D) 2.64% compounded monthly
• E) All of them offer the same effective rate.

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Definitions:

Genitalia

The external and internal organs of the reproductive system in both males and females.

Primary Sex Characteristics

The physical features directly involved in reproduction, such as the ovaries in females and testes in males.

Hormones

Chemical messengers produced by glands in the body, which travel through the bloodstream to tissues or organs, affecting various physiological processes.

Fetus

The developing human organism during the period (week 9 until birth) when rapid growth and further development of the structures, organs, and systems of the body occur.