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A financial institution is designing a new savings account that pays interest monthly and wishes to pay 7.94% effectively per year. It desires to advertise
A financial institution is designing a new savings account that pays interest monthly and wishes to pay 7.94% effectively per year. It desires to advertise an annual percentage rate on this new account to be consistent with its competitors. What rate should they advertise?
a.
10.32%
b.
0.64%
c.
7.94%
d.
5.90%
e.
7.66%
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