You are planning to save your Christmas bonuses from work and are comparing savings accounts: Account A compounds semi-annually while account B compounds monthly. If both accounts have
The same effective annual rate of interest and you place only the bonuses in the account, you
Should choose ___________.
A) Account A because it has a higher APR.
B) Account B because it has a higher APR.
C) Account B because it is compounded more often.
D) Account A because you will pay less in taxes.
E) Either since you would be indifferent between the two.
Correct Answer:
Verified
Q286: A nominal rate of 8.9% compounded semi-annually
Q291: What is the effective annual rate if
Q295: Marie has a $400,000 investment and she
Q301: Which is the best definition of a
Q302: Which is the best definition of an
Q304: You are considering two loans. The terms
Q305: Jamie is a self-employed consultant. A prospective
Q306: Which is the best definition of a
Q307: Which is the best definition of a
Q315: The interest rate which lenders must report
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents