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:

Contingencies of Reinforcement

The conditions or situations that determine the consequences of a behavior, which can either encourage or discourage the recurrence of that behavior.

Reward

Something given in exchange for good behavior or achieved objectives, used as a form of motivation.

Employees

Individuals who are hired to perform specific duties or services for an employer in return for payment.

Alcohol Addiction

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol despite adverse consequences on personal and professional life.