Would love the help. 11 Match each account with its correct behavior over time.Type of AccountOn an account earning 5.875%compounded semi-monthly, the effective rate ofinterest willOn an account earning 5.875% simpleinterest, the effective rate of interest will:On an account earning 5.875%compounded weekly, the amount of interestearned in the fourth year willOn an account earning 5.875% simpleinterest, the amount of interest earned in thefourth year willBehaviora. decrease over timeb. be greater than the amount earned in the firstyearC. remain constant over timed. be equal to the amount earned in the first year

The effective rate of interest refers to the interest rate which shows the return on an investment…

Answered: Match each account

Business

Finance

Match each account

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Question

Would love the help. 11

Match each account with its correct behavior over time.
Type of Account
On an account earning 5.875%
compounded semi-monthly, the effective rate of
interest will
On an account earning 5.875% simple
interest, the effective rate of interest will:
On an account earning 5.875%
compounded weekly, the amount of interest
earned in the fourth year will
On an account earning 5.875% simple
interest, the amount of interest earned in the
fourth year will
Behavior
a. decrease over time
b. be greater than the amount earned in the first
year
C. remain constant over time
d. be equal to the amount earned in the first year

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