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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 0.035%, a weekly compounded rate of 0.325%, a monthly compounded rate of 1.45%, a quarterly compounded rater of 4.25%, a semiannually compounded rate of 8%, or an annualiy compounded rate of 17% ? What is the effective annal fate (EAR) of a daily compounded rato of 0.035% ? W (Round to two decimal places.)
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