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any help would be appreciated if you can show me how to solve, our professor did not go over EAR in much detail and i
any help would be appreciated if you can show me how to solve, our professor did not go over EAR in much detail and i can't seem to find any help anywhere:-(
(Related to Checkpoint 5.7) (Calculating an EAR) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 13 percent compounded semiannually or from a bank at 14 percent compounded daily. Which alternative is more attractive? elated to Checkpoint 5.7) (Calculating an EAR) You have a choice of borrowing money from a finance company at 22 percent compounded weekly or borrowing money from a bank at 22 reent compounded daily. Which alternative is the most attractive? What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother? elated to Checkpoint 5.7) (Calculating an EAR) Based on effective interest rates, would you prefer to deposit your money into Springfield National Bank, which pays 7.5 percent interest mpounded quarterly, or into Burns National Bank, which pays 7.3 percent compounded annually? (Hint: Calculate the EAR on each account.)Step by Step Solution
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