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BankOne quotes you a deposit interest rate of 18% (APR12, annual rate stated with monthly compounding frequency, e.g. proportional interest payment paid monthly). What is
| BankOne quotes you a deposit interest rate of 18% (APR12, annual rate stated with monthly compounding frequency, e.g. proportional interest payment paid monthly). What is the BankOne's rate expressed as annual effective rate (AER, EAR) ? |
| If BankTwo pays interest quarterly, what interest rate (APR4, ann. rate stated with comp. freq. 4-times per year) do they have to quote you to make you indifferent between these bank deposit account offers? |
| Calculate the above interest rate(s) in terms of the annual rate expressed with continuous compounding ! |
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Victorian Literature And Finance
Authors: Francis O'Gorman
1st Edition
0199281920, 978-0199281923
