contestada

The more frequently a bank compounds interest, _____ will be.
a. the higher the stated interest rate
b. the lower the inflation rate
c. the higher the effective rate
d. the lower the yield rate
e. the higher the normal rate

Respuesta :

LearnGrow
The more frequently a bank compounds interest, the higher the APY  will be, where APY stands for the annual percentage yield. It is the effective annual rate of return taking into account the effect of compounding interest Or in other words, APY is how much money you earn on a deposit over a year. 
The answer is C. the higher the effective rate
Effective rate refers to the interest that actually paid for a certain amount of investment. Since compound interest is The addition of interest paid to the principal sum of a loan or deposit, more compound interest will increase the amount of interest rates that will be earned by the investor.

Otras preguntas