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6. Here are some alternative investments you are considering for one year. (i) Bank A promises to pay 8% on your deposits, compounded annually. (ii)

6. Here are some alternative investments you are considering for one year. (i) Bank A promises to pay 8% on your deposits, compounded annually. (ii) Bank B promises to pay 8% on your deposits, compounded daily. Compare the effective annual rates (EARs) on these investments.

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