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Ex 20. Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate

Ex 20. Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded: (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f) continuously?

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