You have the choice between two investments that have the same maturity and the same nominal return.Investment A pays SIMPLE interest,investment B pays compounded interest.Which one should you pick?
A) A,because it has a higher effective annual return.
B) A and B offer the same return,thus they are equally as good.
C) B,because it has higher effective annual return.
D) Not enough information.
Correct Answer:
Verified
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