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Five banks offer the same nominal 5 % rate ( Inom , APR ) on deposits, but A pays interest annually, B pays semiannually, C
Five banks offer the same nominal rate Inom APR on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily.
Calculate the effective annual rate EARAPY for each bank and the future values of a $ deposit at the end of year and years
Number of pds in year
Effective interest rate per period
EARAPY
FV after year
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