Engr. Renz is offered to invest in the choices below. Which investment must be choose that will produce the highest yield? a. 9% compounded monthly b. 9.25 compounded bi-monthly c.9.10% compounded  semi-quarterly d. 8.75% compounded  continuously

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.