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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 .050%, a weekly compounded rate of .265%, a monthly compounded rate of 1.45%, a quarterly compounded rater of 4.50%, a semiannually compounded rate of 8%, or an annually compounded rate of 14%?

PLEASE CALCULATE THE EFFECTIVE ANNUAL RATE (EAR) FOR EACH INSTANCE

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