Which of the following statements concerning the effective annual rate are correct? I. When making financial decisions, you should compare effective annual rates rather than annual percentage rates . II. The more frequently interest is compounded, the lower the effective annual rate given a fixed annual percentage rate. III. When choosing a savings account, you should select the offer with the highest effective annual rate. IV. A quoted rate of 6 percent compounded monthly has a higher effective annual rate than if the rate were compounded daily.

Can be more than one