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Charter Bank pays a 6.90% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%) does the bank pay? a. 8.83% b. 8.26%
Charter Bank pays a 6.90% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%) does the bank pay?
| a. | 8.83% | |
| b. | 8.26% | |
| c. | 7.69% | |
| d. | 7.12% | |
| e. | 5.48%
|
What is the present value of the following cash flow stream at a rate of 10.5%?
| Years: | 0 | 1 | 2 | 3 | 4 | |
| CFs: | $0 | $1,500 | $3,000 | $4,500 | $6,000 |
| a. | $10,615 | |
| b. | $12,850 | |
| c. | $11,174 | |
| d. | $10,168 | |
| e. | $9,721 |
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