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Posted on Aug 28, 2024

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 0.305%, a monthly compounded rate of 1.35%, a quarterly compounded rater of 3.50%, a semiannually compounded rate of 8%, or an annually compounded rate of 18%? What is the effective annual rate (EAR) of a daily compounded rate of 0.035%? % (Round to two decimal places.)

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