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Investment scheme Consider the following three investment schemes: 9.5% pa. (nominal rate) compounded daily 10.0% pa. (nominal rate) compounded monthly 10.5% p.a. (nominal rate) compounded

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Consider the following three investment schemes: 9.5% pa. (nominal rate) compounded daily 10.0% pa. (nominal rate) compounded monthly 10.5% p.a. (nominal rate) compounded quarterly a. Which investment scheme is the most profitable, assuming that the initial invest- ment is the same for each case? b. What is the effective annual interest rate of the best scheme? c. What is the nominal interest rate of the best scheme when compounded continu- ously

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