Interest rate alternatives


Problem: Assuming you will leave your money in the bank for the entire year, which of the following interest rate alternatives would you prefer?

a. 11.75 % compounded semi-annually

b. 11.75 % compounded quarterly

c. 11.45 % compounded weekly

d. 11.45 % compounded annually

e. None of the above or insufficient information

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Finance Basics: Interest rate alternatives
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