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
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The theoretical justification in support of the effective interest method of amortizing a discount is that it represents
A) a stable interest expense. B) a stable interest rate. C) an increasing balance in the discount account. D) an increasing balance in the book value account.
Which of the following is NOT necessary for a product-related objective to be effective?
A) It should focus on short-term implications. B) It should be measurable. C) It should be feasible. D) It should indicate a specific time frame. E) It should be clear.
David, a payroll clerk, came up with an idea for processing payroll more efficiently and presented it to the Human Resources Department manager. This is an example of an upward flow of communication
Indicate whether the statement is true or false
Buyer enters a paint store and tells the clerk that she needs paint that will cover and stick to a
stucco wall. The seller tells her that brand X paint will do the trick. Buyer purchases brand X paint and paints her stucco wall, but three weeks later the paint peels off. This would be a breach of which kind of warranty? A) An express warranty B) Implied warranty of fitness for a particular purpose C) Implied warranty of no infringements D) Implied warranty of merchantability