44
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Question 44 • Financial Math

Analyze the table of account balances for three accounts. The first account pays simple interest at a rate of 4.5%, the second pays compound interest quarterly at a rate of 4%, and the third account pays compound interest monthly at a rate of 3%. Which account pays interest the most frequently? [Dropdown 1] Which account pays the most amount of interest after 5 years? [Dropdown 2]

Answer

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compound interest (3%)|simple interest (4.5%)

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