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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.
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 0.305%, a monthly compounded rate of 1.35%, a quarterly compounded rater of 4.15%, a semiannually compounded rate of 8.5%, or an annually compounded rate of 17% ? What is the effective annual rate (EAR) of a daily compounded rate of 0.045% ? \% (Round to two decimal places.) What is the EAR of a weekly compounded rate of 0.305% ? \% (Round to two decimal places.) What is the EAR of a monthly compounded rate of 1.35%? \% (Round to two decimal places.) What is the EAR of a quarterly compounded rate of 4.15% ? \% (Round to two decimal places.) What is the EAR of a semiannually compounded rate of 8.5% ? \% (Round to two decimal places.) What is the EAR of an annually compounded rate of 17% ? % (Round to two decimal places.)
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