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If you have $100,000 to bank with 6 different banks, which are paying 6% APR (annual percentage rate) but with different frequency of payment/compounding, how
If you have $100,000 to bank with 6 different banks, which are paying 6% APR (annual percentage rate) but with different frequency of payment/compounding, how much will you have in each banks a/c, and what is each banks EAR (Effective Annual Rate)?
[A] Annually > Bal = 100,00 x (1 + 0.06) = ; EAR = 1.06 - 1.00 = 6%
[B] Semi-annually > Bal = ??? ; EAR = ???
[C] Quarterly >
[D] Monthly >
[E] Daily >
[F] Continuously >
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