Effective Rates COLLAPSE What is the effective rate of 16 compounded daily, monthly, quarterly, semi annually, annually If the effective rate is 12 and compounding is quarterly, compute the nominal rate You want to invest your money Bank 1 offers you a rate of 8 5 compounded quarterly Bank 2 offers you a rate of 8 2 compounded daily Bank 3 offers you a rate of 8 75 compunded semi annually Bank 4 offers you an effective rate of 8 85 Which bank would you choose In problem 3, would you change your answer if you were borrowing from one of these banks

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Effective Rates COLLAPSE What is the effective rate of 16% compounded daily, monthly, quarterly, semi-annually, annually? If the effective rate is 12% and compounding is

Effective Rates

COLLAPSE

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