Which of the Following Bank Accounts Has the Highest Effective

question 52

Multiple Choice

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

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

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Definitions:

Tetrodotoxin (TTX)

A potent neurotoxin found in certain species of pufferfish as well as some other marine and terrestrial animals, known for blocking sodium channels on nerve cells.

Convergent Evolution

The process whereby organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.

Homoplasious Trait

A trait shared by multiple species or individuals due to convergent evolution, not because of a common ancestor.

Monophyletic Group

A set of organisms that includes an ancestral species and all its descendants, representing a single branch on the tree of life.