Which Of The Following Bank Accounts Has The Highest Effective Annual Return?

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Suppose you are comparing loans from 2 different financial institutions. C An account that pays 8 nominal interest with daily 365 day- compounding.

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An account that pays 8 nominal interest with annual compounding.

Which of the following bank accounts has the highest effective annual return?. Which of the following bank accounts has the highest effective annual return. The more frequent the. An account that pays 8 nominal interest with monthly compounding.

Effective Annual Rate I is the effective annual interest rate or effective rate. An account that pays 7 nominal interest with daily 365-day compounding d. An account that pays 7 nominal interest with monthly compounding.

An account which pays 10 nominal interest with daily com-pounding. Whick of the following bank accounts has the highest effective return and why. Effective Annual Rate 833 Conclusion on bank account that has the highest effective annual return- Option E An account that pays 8 nominal interest with daily 365-day compounding.

An account that pays 7 nominal interest with daily 365-day compounding. Which of the following bank accounts has the highest effective annual return. Which of the following bank accounts has the highest effective annual return.

Ask Question 100. Which Of The Following Bank Accounts Has The Highest Effective Annual Return EAR. Savings compounded _____ would have the highest effective yield.

Download the Free Template. If you deposit 1000 in a bank account paying 10 interest annually after one year you would have 1100 in the bank account 1000 x 1 1 1. An account that pays 8 nominal interest with annual compounding.

Hi guys I need help on these two homework questions for my finance class. Effective Annual Rate Calculator. An account that pays 8 nominal interest with monthly compounding.

An account that pays 8 nominal interest with annual compounding. An account that pays 10 nominal interest with monthly compounding b. An account which pays 10 nominal interest with monthly com-pounding.

An account that pays 10 percent nominal interest with daily com-pounding. Which of the following bank accounts has the highest effective annual return. An account that pays 8 nominal interest with monthly compounding b.

The effective annual interest rate allows you to determine the true return on investment ROI ROI Formula Return on Investment Return on investment ROI is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. An account that pays 10 percent nominal interest with monthly com-pounding. Which of the following bank accounts has the highest effective annual return.

An account that pays 10 nominal interest with annual compounding d. An account that pays 9 nominal interest with daily. In the formula i I100.

To answer this question we need to determine and compare the effective annual rate the interest rate that Timmy actually earns for each bank account option. It is most commonly measured as net income divided by the original capital. An account which pays 10 nominal interest with annual com-pounding.

Effective Annual Rate Calculation. An account that pays 7 nominal interest with daily 365-day compounding. An account that pays 8 nominal interest w monthly compounding.

Below is a screenshot of CFIs free effective annual rate EAR calculator. An account that pays 10 percent nominal interest with annual com-pounding. Which of the following bank accounts has the highest effective return and WHY.

Which of the following bank account has the lowest effective annual return. The effective annual interest rate is the real return paid on savings or the real cost of a loan as it takes into account the effects of compounding and any fees charged. Determine the rate of return on a savings account in which you deposited 20000 and earned 5.

An account that. The highest nominal percentage rate with the more frequent compounding. As you can see in the example above a nominal interest rate of 80 with 12 compounding periods per year equates to an effective annual percentage rate EAPR of 83.

The first offers you 724 compounded quarterly while the second offers you a lower rate of 718 but compounds interest weekly. An account that pays 10 nominal interest with daily compounding c. An account that pays 8 nominal interest with monthly compounding.

Lets start with a simple example. Get your answers by asking now. An Account That Pays 8 Nominal Interest With Monthly Compounding An Account That Pays 8 Nominal Interest With Annual Compounding An Account That Pays 7 Nominal Interest With Daily 365-day Compounding An Account That Pays 7 Nominal Interest With Monthly Compounding.

Of alternative services rather than having a bank account. An account that pays 8 nominal interest with annual compounding c. Which of the following bank accounts has the highest effective annual return O a.

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