Youaretryingtodecidebetweentwoinvestmentaccounts.AccountApaysanominalannualrateof8.75percent,whichiscompoundedsemi-annually.AccountBhasanominalannualrateof8.4percent,whichiscompoundedweekly.Whichofthefollowingstatementsisleastcorrectregardingthesetwoaccounts?Selectone:
A
The effective return on Account A equals 8.5 percent.
B
The effective return on Account B equals 8.756 percent.
C
You would prefer to invest in Account A.
D
You would prefer an investment in Account B.
E
You would be indifferent between these two accounts.
