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A bank quotes an interest rate of 4.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous
A bank quotes an interest rate of 4.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous compounding and (b) semi annual compounding? O A. Continuous = 2.0%, Annual = 2.5% (Semi-Annual Compounding) O B. Continuous =5.3%, Annual = 4.0% (Semi-Annual Compounding) O C. Continuous = 4.97%, Annual = 5.03% (Semi-Annual Compounding) O D. Continuous = 3.98%, Annual = 4.02% (Semi-Annual Compounding) A bank quotes an interest rate of 4.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous compounding and (b) semi annual compounding? O A. Continuous = 2.0%, Annual = 2.5% (Semi-Annual Compounding) O B. Continuous =5.3%, Annual = 4.0% (Semi-Annual Compounding) O C. Continuous = 4.97%, Annual = 5.03% (Semi-Annual Compounding) O D. Continuous = 3.98%, Annual = 4.02% (Semi-Annual Compounding)
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