Question
A credit union offers 5.2% APR on a one-year (52 week), $1,000 face value CD with no penalty for early withdrawals and weekly compounding of
A credit union offers 5.2% APR on a one-year (52 week), $1,000 face value CD with no penalty for early withdrawals and weekly compounding of interest rate.
a. What is the Effective Annual rate (EAR) on this CD? Show all your work (2 Points)?
b. What is the value of the CD at the end of 9 months (39 weeks)?
(Please do not use excel. Please use TI-84 or equivalent)
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
