Solve the problem.
-You have a choice of two accounts in which to invest your money for one year. Account A pays 3.1% simple interest rate and account B pays 2.5% interest compounded monthly. Compute the Effective annual yield of account B and determine which account has the better rate.
A) The rates are the same.
B) There is not enough information to decide.
C) Account A
D) Account B

Question

Quizplus · Accepted Answer

The Answer of Solve the problem.
-You have a choice of two accounts in which to invest your money for one year. Account A pays 3.1% simple interest rate and account B pays 2.5% interest compounded monthly. Compute the Effective annual yield of account B and determine which account has the better rate.
A) The rates are the same.
B) There is not enough information to decide.
C) Account A
D) Account B

Solve the Problem. -You Have a Choice of Two Accounts in Which to in Which