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Your Bank Offers Two Options: Account a Compounds Semi-Annually While

Question 74

Multiple Choice

Your bank offers two options: Account A compounds semi-annually while account B compounds monthly.If both accounts have the same effective annual rate of interest, you should choose


A) account A as it offers a higher APR.
B) account B as it offers a higher APR.
C) account B because it is compounded more often.
D) account A because it is compounded less often.
E) either since you would be indifferent between the two.

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