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Compute the n-period effective annual rate in the following problem and give the best answer: Tim plans to open a new bank account and calls
Compute the n-period effective annual rate in the following problem and give the best answer: Tim plans to open a new bank account and calls several banks to find out where he can earn the most interest on his money. After talking with several banks, Tim has three options. Which bank account should he choose to earn the highest return on his money?
8% compounded daily
8.25% compounded quarterly
8.4% compounded annually
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