Question
Bank A pays 3.6% interest compounded semi-annually on deposits; Bank B pays 3.59% compounded monthly; and Bank C pays 3.588% compounded daily. Based on the
Bank A pays 3.6% interest compounded semi-annually on deposits; Bank B pays 3.59% compounded monthly; and Bank C pays 3.588% compounded daily. Based on the effective annual rate, which bank should you use? (Make sure you calculate the effective annual rate for each bank) Show how to do this on a financial calculator.
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
6th Edition
1259922316, 9781259922312
