Question
k) Five banks offer nominal rates of 10% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and
k) Five banks offer nominal rates of 10% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year.
What effective annual rate does each bank pay? If you deposit $6,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places.
| A | B | C | D | E | |
| EAR | 10.00% | 10.25% | 10.38% | 10.47% | 10.52% |
| FV after 1 year | $6,600.00 | $ | $ | $ | $ |
| FV after 2 years | $7,260.00 | $ | $ | $ | $ |
->Please help with the regular calculation and excel calculation as well.
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
