Assume all else is equal. When comparing savings accounts, you should select the account that has...
Assume all else is equal. When comparing savings accounts, you should select the account that has the:
lowest annual percentage rate.
highest stated rate.
lowest effective annual rate.
highest annual percent rate.
highest effective annual rate.
Homework Answers
Ans highest effective annual rate.
Assume all else is equal. When comparing savings accounts, you should select the account that has the highest effective annual rate.
Effective Interest Rate Formula:
| EAR = | ( 1 + r )^n - 1 |
r = rate of interest
n = no of period
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