You are planning to deposit $1,000 in a savings account. Account A compounds semiannually while account B

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You are planning to deposit $1,000 in a savings account. Account A compounds semiannually while account B compounds monthly. If both accounts have the same quoted annual rate of interest, you should choose _______________.

A. either account since both quote the same rate of interest

B. account A because it has a higher APR

C. account A because it has a higher EAR

D. account B because it is compounded more often

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Nov 22, 2022 11:37 PM

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You are planning to deposit $1,000 in a savings account. Account A compounds semiannually while account B

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ANSWER A either account since both quote the same rate of interest An alternative is to take the odd... View the full answer

Microeconomics An Intuitive Approach with Calculus

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