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a. A bank charges 1% per month on car loans. What is the nominal rate? What is the effective annual rate? b. Calculate the effective
a. A bank charges 1% per month on car loans. What is the nominal rate? What is the effective annual rate? b. Calculate the effective annual interest for 12%/yr compounded annually, monthly, daily and hourly. c. Calculate the effective annual interest for 12%/yr with continuous compounding. d. What is the difference between nominal and effective rates?
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