Periodic interest

rates.

You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of

0.045%,

a weekly compounded rate of

0.285%,

a monthly compounded rate of

1.55%,

a quarterly compounded rater of

3.75%,

a semiannually compounded rate of

7%,

or an annually compounded rate of

18%?

What is the effective annual rate (EAR) of a daily compounded rate of

0.045%?

nothing%

(Round to two decimal places.)