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Why Is It Important to Convert Interest Rates into the APY

Question 67

Multiple Choice

Why is it important to convert interest rates into the APY on different accounts and with different banks?


A) Some banks and accounts pay higher advertised rates.
B) The same advertised rate will vary with different compounding periods.
C) The Truth in Savings Act of 1993 omits this comparison.
D) With FDIC Banks it is not necessary to convert interest rates for comparison.

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