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Please show all work. If using excel, please list all steps/ formulas. (screenshots also helpful!) 3. You plan to invest some money in a bank

Please show all work. If using excel, please list all steps/ formulas. (screenshots also helpful!)

3. You plan to invest some money in a bank account. Please compute the effective annual rates (EAR) for each bank below. Which of the following banks provides you with the highest effective rate of interest?

Bank 1; 5.1% with annual compounding Bank 2; 5.0% with monthly compounding Bank 3; 5.0% with annual compounding Bank 4; 5.0% with quarterly compounding. Bank 5; 5.0% with daily (365-day) compounding

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