Which of these savings rates is most favorable?
A) 5% compounded annually
B) 4.9% compounded monthly
C) 4.8% compounded quarterly
D) 4.8% continuously compounded

Name: Which of these savings rates is most favorable? A) 5% compounded annually B) 4.9% compounded monthly C) 4.8% compounded quarterly D) 4.8% continuously compounded
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The effective annual rate (EAR) for 4.9% compounded monthly is higher than the other options, making it the most favorable savings rate.

Which of These Savings Rates Is Most Favorable