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 0.055%, a weekly compounded rate of 0.355%, a monthly compounded rate of 1.45%, a quarterly compounded rater of 4.50%, a semiannually compounded rate of 7%, or an annually compounded rate of 15%?

What is the effective annual rate (EAR) of a daily compounded rate of 0.055%?

_________% (Round to two decimal places.)

What is the EAR of a weekly compounded rate of 0.355%?

__________% (Round to two decimal places.)

What is the EAR of a monthly compounded rate of 1.45%?

__________% (Round to two decimal places.)

What is the EAR of a quarterly compounded rate of 4.50%?

__________% (Round to two decimal places.)

What is the EAR of a semiannually compounded rate of 7%?

___________% (Round to two decimal places.)

What is the EAR of an annually compounded rate of 15%?

___________% (Round to two decimal places.)

Which periodic rate would you rather have for your savings account? (Select the best response.)

A. Upper A quarterly compounded rate of 4.50%.

B. Upper A monthly compounded rate of 1.45%.

C. An annually compounded rate of 15%.

D. Upper A daily compounded rate of 0.055%.

E. Upper A weekly compounded rate of 0.355%.

F. Upper A semiannually compounded rate of 7%.