Question
Witch bank is offering an investment deposit that provides for an interest rate of 12% p.a., compounding monthly. Its competitor, Dragon Bank, is offering a
Witch bank is offering an investment deposit that provides for an interest rate of 12% p.a., compounding monthly. Its competitor, Dragon Bank, is offering a rate of 12.3% p.a., compounding quarterly. Which of the following statements about the alternative investments is true?
Group of answer choices
It is better to invest in Witch Bank because the effective interest rate is higher
none of the given answers
They both offer the same effective interest rate
It is better to invest in Dragon Bank because the effective interest rate is higher
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Fundamentals Of Futures And Options Market
Authors: John C. Hull
6th Edition
0132242265, 9780132242264
