Which of the following investments has the highest effective annual return (EAR)? (Assume that all
CDs are of equal risk.)
A) a bank CD that pays 7.10 percent compounded monthly
B) a bank CD that pays 7.30 percent annually
C) a bank CD that pays 7.25 percent compounded semiannually
D) a bank CD that pays 7.00 percent interest compounded daily
C
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Your great aunt Mary passed away and left you and inheritance of $5,000.00. Since you don't have a need for the money in the near future, which of the following would be the best place to put the $5,000.00?
A. a savings account earning 1% interest B. a checking account C. high risk stock in a producer of natural gas that is predicted to triple in the next year D. a five-year CD paying 4.38% annually
Punitive damages can be recovered in strict liability and intentional tort cases
Indicate whether the statement is true or false