Question
1-A bank advertises it pays 4% annual interest, compounded daily, on savings accounts, provided the money is left in the account for 5 years. What
1-A bank advertises it pays 4% annual interest, compounded daily, on savings accounts, provided the money is left in the account for 5 years. What is the effective annual interest rate?
2-A student bought a $75 used guitar and agreed to pay for it with a single $80 payment at the end of 3 months. What is the nominal annual interest rate? What is the effective interest rate?
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The New Market Wizards Conversations With Americas Top Traders
Authors: Jack D. Schwager
1st Edition
0887306675, 978-0887306679
