The Consistent Savings and Loan is designing a new account that pays interest quarterly. It wishes to
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The Consistent Savings and Loan is designing a new account that pays interest quarterly. It wishes to pay, effectively, 16% per year on this account. Consistent desires to advertise the annual percentage rate on this new account, instead of the effective rate, since its competitors state their interest on an annualized basis. What is the APR that corresponds to an effective rate of 16% for this new account?
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Related Book For
Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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