Question: Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays 8.0 percent interest compounded annually, or into

Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays 8.0 percent interest compounded annually, or into Burns National Bank, which pays 7.8 percent compounded monthly? (Hint: Calculate the EAR on each account.)

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