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There are two savings products, Product 1 and Product 2. Product 1 has Annual percentage rate (APR) of 20%, interest rate is compounded continuously. You
There are two savings products, Product 1 and Product 2. Product 1 has Annual percentage rate (APR) of 20%, interest rate is compounded continuously. You are told that the two products have the same Effective Annual Rate (EAR). Product 2s interest rate is compounded annually. What is the Annual percentage rate (APR) of Product 2 then?
A) 21%
B) 22.14%
C) 20%
D) 21.55%
E) 21.94%
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