Final answer:
The statement 'An interest rate of 20 percent, compounded monthly, is far too high' is an opinion about interest rates. This is because it includes a subjective judgment that varies based on individual perspective and market conditions, unlike the other options, which are factual. Therefore, the correct option is C.
Step-by-step explanation:
The opinion about interest from the options provided is: c. An interest rate of 20 percent, compounded monthly, is far too high. This statement is considered an opinion because it contains a subjective judgment about what constitutes a 'high' interest rate, and this judgment can vary based on personal views, financial norms, or market standards.
By comparison:
- a. Most American banks offer interest rates below 10 percent is a factual statement that can be verified through data.
- b. Interest can be compounded yearly, monthly, or even daily is a statement explaining different compounding frequencies, which is a factual aspect of how interest is calculated.
- d. Interest is accrued on savings accounts, but rarely checking accounts is another factual statement, as it describes typical accounts policies in banking.
Regarding interest rates, Figure 17.4 shows that the interest rates on certificates of deposit (CDs) have fluctuated over time, with rates typically a little lower for savings accounts as compensation for the liquidity provided by these accounts compared to CDs.