To compare interest rates, we should compare the
A)quoted rates.
B)nominal rates.
C)effective rates.
D)periodic rates.

Name: To compare interest rates, we should compare the A)quoted rates. B)nominal rates. C)effective rates. D)periodic rates.
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Question

Quizplus · Accepted Answer

Effective interest rates incorporate compounding, which can have a significant impact on the total amount of interest earned or paid over time. Comparing effective rates is the most accurate way to compare different interest rate offers.

To Compare Interest Rates, We Should Compare the