Question

fill in each blank so that the resulting statement is true. if you are selecting the best investment from two or more investments, the best choice is the account with the greatest _, which is the _ 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. if you are selecting the best investment from two or more investments, the best choice is the account with the greatest dropdown, which is the dropdown 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.

Explanation:

1. For the first blank: When choosing the best investment among multiple options, the key factor to compare is the "annual percentage yield (APY)" or "effective annual rate" because it reflects the actual return considering compounding. The term that fits here is "annual percentage yield" (or "effective annual rate", but in the context of interest rate equivalence for compound interest, the standard term for the rate that makes compound interest equivalent to simple interest in one year is the "effective annual rate" or more commonly, the "annual percentage yield" is related, but the precise term here is "effective annual rate" or "annual percentage yield", but the specific term is "annual percentage yield" or "effective annual rate". However, the correct term for the first blank is "annual percentage yield" (APY) or "effective annual rate", but the standard term in this context is "annual percentage yield" (APY) or "effective annual rate". Wait, actually, the first blank is "annual percentage yield" (APY) or "effective annual rate", and the second blank is "simple" because the effective annual rate is the simple interest rate that would give the same amount as compound interest over one year. Wait, no: The effective annual rate (EAR) is the interest rate that, when compounded annually (simple interest), gives the same result as the compound interest rate over one year. So the first blank is "annual percentage yield" (or "effective annual rate") and the second blank is "simple". Wait, let's recall: The effective annual yield (or effective annual rate) is the simple interest rate that produces the same amount of money at the end of one year as the compound interest rate. So the first blank is "annual percentage yield" (or "effective annual rate") and the second blank is "simple".

Answer:

First blank: annual percentage yield (or effective annual rate)
Second blank: simple

Wait, but the question is to fill in the blanks. Let's check the standard definition: The annual percentage yield (APY) (or effective annual rate) 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. So when choosing the best investment, you pick the one with the greatest APY (or effective annual rate). So the first blank is "annual percentage yield" (or "effective annual rate") and the second blank is "simple".