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An investor wishes to maximise the return from an investment of a given sum of money and is given the following information on interest rate

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An investor wishes to maximise the return from an investment of a given sum of money and is given the following information on interest rate alternatives: The I'm Friendly Bank offers 3.75% per annum compounded quarterly. The Working Bank offers 3.7% per annum compounded monthly. Calculate the effective interest rate for each investment alternative and identify which is the best rate for the investor

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