Belleville Credit Union has established interest rates on its three year GICs so that the effective rate of interest is 7 on all three compounding options What are the monthly, semiannually, and annually compounded rates ...

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Belleville Credit Union has established interest rates on its three-year GICs so that the effective rate of

Question:

Belleville Credit Union has established interest rates on its three-year GICs so that the effective rate of interest is 7% on all three options. What are the monthly, semiannually, and annually compounded rates?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...