Question
2. Answer the following questions: (a) The Central Bank pays 4.1% compounded monthly on certain types of deposits. What is the effective annual rate of
2. Answer the following questions: (a) The Central Bank pays 4.1% compounded monthly on certain types of deposits. What is the effective annual rate of interest?
(b) If interest is compounded daily, what nominal rate of interest compounded daily will maintain the same effective rate of interest in part (a)?
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Introductory Course On Financial Mathematics
Authors: M V Tretyakov
1st Edition
1908977388, 978-1908977380
