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Bank A compounds interest on a quarterly basis. It offers a high yield savings account that pays interest of 40% APR, compounded quarterly. If bank
Bank A compounds interest on a quarterly basis. It offers a high yield savings account that
pays interest of 40% APR, compounded quarterly. If bank B wants to match the effective
annual rate (EAR) of bank A, but bank B compounds interest on a daily basis (365 days/year),
what APR, compounded daily, would B have to offer customers?
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