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Your bank offers two options: Account A compounds semi - annually while account B compounds monthly. If both accounts have the same effective annual rate

Your bank offers two options: Account A compounds semi-annually while account B compounds monthly. If both accounts have the same effective annual rate of interest, you should choose Question 4 options: account A as it offers a higher APR. account A because it is compounded less often. account B because it is compounded more often. either since you would be indifferent between the two.

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