Question: Which of the following investments has the highest effective annual interest

Which of the following investments has the highest effective annual interest rate (EAR)?
a. A bank CD that pays 5.50 percent compounded quarterly.
b. A bank CD that pays 5.45 percent compounded monthly.
c. A bank CD that pays 5.65 percent compounded annually.
d. A bank CD that pays 5.55 percent compounded semiannually.
e. A bank CD that pays 5.35 percent compounded daily (on a 365-day basis).


View Solution:


Sale on SolutionInn
Sales0
Views179
Comments
  • CreatedJune 08, 2012
  • Files Included
Post your question
5000