Question
Bank A pays 4.6% interest compounded quarterly on deposits, Bank B pays 4.595% compounded monthly, and Bank C pays 4.59% compounded daily . Based on
Bank A pays 4.6% interest compounded quarterly on deposits, Bank B pays 4.595% compounded monthly, and Bank C pays 4.59% compounded daily .
Based on the bank effective annual rate , which bank should you use ?
Make sure you calculate the effective annual rate for each bank.
Solve the problem using a financial calculator and show each step of how you came to the answer.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
