Business, 18.10.2019 06:10, bigcm3497

Bank a pays 3% interest compounded annually on deposits, while bank b pays 2.25% compounded daily. a. based on the ear (or eff%), which bank should you use?

a. you would choose bank a because its ear is higher. you would choose bank b because its ear is higher.
b. you would choose bank a because its nominal interest rate is higher.
c. you would choose bank b because its nominal interest rate is higher.
d. you are indifferent between the banks and your decision will be based upon which one offers you a gift for opening an account

Answers: 1

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Bank a pays 3% interest compounded annually on deposits, while bank b pays 2.25% compounded daily. a...

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