Michael Jacks deposited $500,000 into a bank for 6 months. At the end of that time, he

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Michael Jacks deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $520,000. If the bank paid interest based on continuous compounding:
(a) What was the effective annual interest rate?
(b) What was the nominal annual interest rate?
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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