Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.4 Compound Interest - Concept and Vocabulary Check - Page 520: 8

Answer

Effective annual yield, simple

Work Step by Step

If you are selecting the best investment from two or more investments, the best choice is the account with the greatest effective annual yield, which is the simple interest rate that produces the same amount of money at the end of one year as when the account is subject to compound interest at a stated rate.
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