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4A,4B,4C,4D FINANCE QUESTIONS AND ANSWERS REVIEW TEST 2023/2024

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Bank A was offering simple interest at 4.75% per year, which was clearly a better deal than the 4.75% compound interest rate at Bank B. Choose the correct answer below. A. The statement does not m... ake sense, because the simple interest pays the same amount as the compound interest at the same interest rate. B. The statement makes sense, because the simple interest pays more than the compound interest. C. The statement does not make sense, because the compound interest pays more than the simple interest. - ANS-C The bank that pays the highest annual percentage rate (APR) is always the best deal. Choose the correct answer below. A. The statement makes sense because a higher APR always results in a higher annual percentage yield than an interest rate with a lower APR. B. The statement does not make sense because, depending on how often the interest is compounded, a lower APR could result in a higher annual percentage yield. Your answer is correct.C. The statement does not make sense because a higher APR always results in a lower annual percentage yield than an interest rate with a lower APR. - ANS-B My bank paid an annual interest rate (APR) of 4.0% but at the end of the year my account balance had grown by 4.1%. Choose the correct answer below. A. This does not make sense, the annual interest rate (APR) is always the annual percentage yield (APY) and the interest rate paid on the balance. CONTINUES.... [Show More]

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