Assume you have a choice between two deposit accounts. Account X has an annual percentage rate of 12.25 percent but with interest compounded monthly. Account Y has an annual percentage rate of 12.20 percent with interest compounded continuously
Which account provides the highest effective annual return?
Account X
EAR = [1 + - 1 = 12.96%
Account Y
EAR = - 1 = 12.75%
Choose X
Business
You might also like to view...
As the agents of stockholders, managers should pursue strategies that maximize short-term returns to stockholders because this increases the value of their shares
Indicate whether the statement is true or false
Business
Dan learned how to knit by watching Bernice knit and copying what she did. This is an example of
A. modeling. B. distributed learning. C. reinforcing behavior. D. individual learning difference.
Business