Which of the following investments has the highest effective annual interest rate (EAR)? a. A bank CD
Question:
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).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (16 reviews)
a Interest rate on CD i 550 Frequency of compounding m 4 Ef...View the full answer
Answered By
Lamya S
Highly creative, resourceful and dedicated High School Teacher with a good fluency in English (IELTS- 7.5 band scorer) and an excellent record of successful classroom presentations.
I have more than 2 years experience in tutoring students especially by using my note making strategies.
Especially adept at teaching methods of business functions and management through a positive, and flexible teaching style with the willingness to work beyond the call of duty.
Committed to ongoing professional development and spreading the knowledge within myself to the blooming ones to make them fly with a colorful wing of future.
I do always believe that more than being a teacher who teaches students subjects,...i rather want to be a teacher who wants to teach students how to love learning..
Subjects i handle :
Business studies
Management studies
Operations Management
Organisational Behaviour
Change Management
Research Methodology
Strategy Management
Economics
Human Resource Management
Performance Management
Training
International Business
Business Ethics
Business Communication
Things you can expect from me :
- A clear cut answer
- A detailed conceptual way of explanation
- Simplified answer form of complex topics
- Diagrams and examples filled answers
4.90+
46+ Reviews
54+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Question Posted:
Students also viewed these Accounting questions
-
Which of the following investments has the greater relative risk? Investment Expected Return, Standard Deviation, o 16.0% 7.0% 27.0 13.0
-
Which of the following C corporations will be allowed to use the cash method of accounting for 2017? Explain your answers. a. Jade Corporation, which had gross receipts of $5.3 million in 2014, $4.1...
-
Which of the following constraints are not linear or cannot be included as a constraint in a linear programmingproblem? a. 2X1 + X2 3X3 50 b. 2x V60 c. 4x1-x2 = 75 d. 3x1 + 2x2-3x30.9 3x7+7x2 < 45 e.
-
Jake needed a summer job and was lucky enough to land a position as a ticket collector at a local amusement park. On his first day, he was assigned to work alongside Tim who had worked at the park...
-
What are some ways an audit report for a government differs from an audit report for a for-profit organization?
-
Assume that all grade-point averages are to be standardized on a scale between 0 and 4. How many grade-point averages must be obtained so that the sample mean is within 0.01 of the population mean?...
-
The following information relates to the business of Restaurant Gigi, and the owner is concerned about the profitability and financial structure of his business at 30 June 2025, especially since the...
-
For diagrams (a)-(d), compute the unknown values: B, C, V, x, respectively, using the minimum number of compound interest factors. 200 200 200 200 100 100 100 -:- -2-3- -4 -2-3-4- i- 10% i= 10% (h)...
-
K A country's savings S is defined implicitly in terms of its national income I by the equation where both S and I are in billions of dollars. Find the marginal propensity to consume when 1-22 and S...
-
No. 3 Prepare the payroll for the last pay period of October from Time Clerks LO 1 Report Nos. 40 and 41. The proper procedure in recording the payroll follows: Complete the payroll register....
-
You have just won a lottery that promises an annual payment of $118,312 beginning immediately. You will receive a total of 10 payments. If you can invest the cash flows in an investment paying 7.65...
-
What are the two components of a total holding period return?
-
a. Identify the factors that determine the premiums charged for auto insurance. b. Explain the significance of an applicant's credit score in auto insurance underwriting and rating.
-
Why do many investors seek to acquire an investment portfolio representative of the broad market, such as the S&P 500 index of stocks?
-
How would your answer to question 9 change under the term premium hypothesis? Data from question 9 Under the expectations hypothesis of the term structure, what does a positively sloped yield curve...
-
What is the role of restrictive covenants in a bond indenture? What are some common covenants?
-
Mutual funds have a wide variety of investment strategies. And in a particular quarter or over a particular year, some will have substantially higher returns than others. Would you expect these same...
-
What are the reasons for issuing preferred stock? Why does the federal government usually acquire preferred shares when it takes an equity position in a firm?
-
Study Fig. 2.2, and comment on the relationship between GNP and private consumption. Figure 2.2 16,000.0 14,000.0 12,000.0 10,000.0 8,000.0 6,000.0 4,000.0 2,000.0 0.0 -2,000.0 Components of GDP...
-
Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate?
-
What is a super clone?
-
Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new...
-
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5 million on TV, radio, and print advertising this year...
-
Hyperion, Inc., currently sells its latest high-speed color printer, the Hyper 500, for $350. It plans to lower the price to $300 next year. Its cost of goods sold for the Hyper 500 is $200 per unit,...
-
Write an equation for the polynomial graphed below 5+ 4 + -5-4-3-2 y = 3. 2- 1 + + 2 3 4 5 -2 345 -5+
-
How can ethical leadership principles be leveraged to navigate the complexities of organizational dynamics and promote a culture of integrity, accountability, and social responsibility ?
-
Consider the 12-QAM constellation shown in Figure 2 and the baseband pulse, g(t) depicted in Figure 3. The 12 passband transmit waveforms are represented as Sm1(t) = Amig(t) cos (2fet) - Amag(t) sin...
Study smarter with the SolutionInn App