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A bank quotes an interest rate of 5.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous
A bank quotes an interest rate of 5.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous compounding and (b) semi annual compounding?
.A
Continuous =6.5%, Annual = 7.0%
B.
Continuous = 2.0%, Annual = 2.5%
C.
Continuous = 5.46%, Annual = 5.54%
D.
Continuous = 5.94%, Annual = 5.06%
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