Final answer:
Bank D is offering the highest effective annual yield of 5.57%.
Step-by-step explanation:
The student is asking which bank is offering a better rate based on the information provided. To determine this, we need to compare the rates and compounding periods for each bank.
Bank A is offering a rate of 1.47% compounded semi-annually, Bank B is offering a rate of 1.3% compounded quarterly,
Bank C is offering a rate of 1.37% compounded monthly, and Bank D is offering a rate of 1.41% compounded weekly.
To compare these rates, we need to calculate the effective annual yield for each bank. This can be done using the formula:
Effective Annual Yield = (1 + (Nominal interest rate / Compounding periods))^(Compounding periods) - 1.
Let's calculate the effective annual yields for each bank:
Bank A: Effective Annual Yield = (1 + (1.47% / 2))^2 - 1
= 1.0147^2 - 1
= 0.0295 or 2.95%.
Bank B: Effective Annual Yield = (1 + (1.3% / 4))^4 - 1
= 1.0125^4 - 1
= 0.0516 or 5.16%.
Bank C: Effective Annual Yield = (1 + (1.37% / 12))^12 - 1
= 1.0114^12 - 1
= 0.0534 or 5.34%.
Bank D: Effective Annual Yield = (1 + (1.41% / 52))^52 - 1
= 1.0107^52 - 1
= 0.0557 or 5.57%.
Based on the calculations, Bank D is offering the highest effective annual yield of 5.57%.