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A bank advertises that it pays interest on savings accounts at the rate of 31% compounded daily. Find the effective rate if the bank

 

A bank advertises that it pays interest on savings accounts at the rate of 31% compounded daily. Find the effective rate if the bank assumes that a year consists of (a) 360 days or (b) 365 days in determining the daily rate. Assume that compounding occurs 365 times a year.

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