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If you were depositing funds at a bank and the quoted interest rate was 8% p.a., with interest compounded daily, you would be better off
If you were depositing funds at a bank and the quoted interest rate was 8% p.a., with interest compounded daily, you would be better off if the bank used a 360-day basis rather than a 365-day basis for compounding the interest rate
True or False?
At the beginning I thought this question should be True, because 8%/360 > 8%/365 but when I calculate it efficiency rate which using (1+r/m)^m-1, i found 365 compounding is slightly higher than 360, so I am really confused about it
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