单选题 Peter Wallace wants to deposit $10000 in a bank certificate of deposit (CD). Wallace is considering the following banks: ? Bank A offers 5.72 percent annual interest rate compounded quarterly. Bank B offers 5.75 percent annual interest rate compounded monthly. Bank C offers 5.70 percent annual interest compounded daily. Which bank offers the highest effective interest rate and how much?

A、

A. Bank A, 5.88%.
B、

B. Bank B, 5.90%.
C、

C. Bank C, 5.87%.

【正确答案】 B

【答案解析】Effective interest rates: Bank A, nominal = 5.72; C/Y = 4 ; effective = 5.84 Bank B, nominal = 5.75; C/Y = 12 ; effective = 5.90 Bank C, nominal = 5.70, C/Y = 365 ; effective = 5.87 Hence Bank B has the highest effective interest rate.