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Which of the following offers the highest return?         A. 12% nominal rate compounded monthly         B. 12.4% nominal rate compounded quarterly         C....

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Finance

Which of the following offers thehighest return?

        A. 12% nominalrate compounded monthly

        B. 12.4% nominalrate compounded quarterly

        C. 12.8% nominalrate compounded semi-annually

        D. 13.0% nominalrate compounded annually

        E. Moreinformation is needed to determine the best investment.

Answer & Explanation Solved by verified expert
3.7 Ratings (560 Votes)
Option A Annual Interest Rate APR 12 Compounding Period per year n 12 Effective Annual Rate EAR 1 APRnn 1 Effective Annual Rate EAR 1 0121212 1 Effective Annual Rate EAR 10112 1 Effective Annual Rate EAR    See Answer
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Transcribed Image Text

Which of the following offers thehighest return?        A. 12% nominalrate compounded monthly        B. 12.4% nominalrate compounded quarterly        C. 12.8% nominalrate compounded semi-annually        D. 13.0% nominalrate compounded annually        E. Moreinformation is needed to determine the best investment.

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