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1) A bank quotes an interest rate of 14% per annum with quarterly compounding. What is the equivalent rate with (a) Continuous compounding and (b)

1) A bank quotes an interest rate of 14% per annum with quarterly compounding. What is the equivalent rate with

(a) Continuous compounding and

(b) Annual compounding?

2) When compounded annually an interest rate is 11%. What is the rate when expressed with

(a) Semiannual compounding,

(b) Quarterly compounding?

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