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).



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  • CreatedJune 08, 2012
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