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:

Retail Event Collaboration

Partnerships or joint efforts between retailers and other entities to host events that drive traffic, engagement, and sales.

Coordination

The process of organizing activities or operations in a systematic way to ensure smooth functioning and efficiency.

Supply Chain

A system connecting a business with its providers to manufacture and supply a particular item to the ultimate consumer.

CPFR

Collaborative Planning, Forecasting, and Replenishment is a business practice where supply chain partners share information and resources to better predict customer demand and adjust supply accordingly.