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Bank a Offers an Account with a Nominal Yield of 2

Question 39

Multiple Choice

Bank A offers an account with a nominal yield of 2 percent, and it compounds interest monthly. Bank B offers an account with nominal yield of 2 percent, and it compounds interest daily. Which one has the higher APY?


A) Bank A has the higher APY.
B) Bank B has the higher APY.
C) They both have the same APY.
D) This cannot be solved from the given information.

Correct Answer:

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