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Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment

Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is

compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365

days)?

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