Bank a pays 10% interest compounded annually on deposits, while bank b pays 9% compounded daily. a. based on the ear (or eff%), which bank should you use? you would choose bank a because its ear is higher. you would choose bank b because its ear is higher. you would choose bank a because its nominal interest rate is higher. you would choose bank b because its nominal interest rate is higher. you are indifferent between the banks and your decision will be based upon which one offers you a gift for opening an account.

Bank A should be chosen.

Explanation:

Given:

Effective annual rate (EAR) of bank A = 10%

Bank B pays 9% compounded daily. EAR of bank B is calculated below:

EAR =

Where, i is 0.09

            n is compounding period that is 365 (since it is compounded daily)

EAR =

       = 1.0942 - 1

       = 0.0942 or 9.42%

Bank B pays EAR of 9.42%

Based on EAR, Bank A should be selected as it pays higher EAR of 10%.

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.

answer; rapid growth in buyer demand and high buyer switching cost;