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This question is a 3 part question. please answer all parts this is 1 QUESTION!!!!! Your bank is offering you an account that will pay
This question is a 3 part question. please answer all parts this is 1 QUESTION!!!!!
Your bank is offering you an account that will pay 17% interest (an effective two-year rate) in total for a two-year deposit. Determine the equivalent discount rate for the following periods: a. Six months b. One year c. One month (Note: Be careful not to round any intermediate steps less than six decimal places.) a. Six months The equivalent discount rate for a period length of six months is \%. (Round to two decimal places.) The effective annual rate for your credit card is \%. (Round to two decimal places.) You have found three investment choices for a one-year deposit: 9.2\% APR compounded monthly, 9.2% APR compounded annually, and 8.5% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) (Note: Be careful not to round any intermediate steps less than six decimal places.) The EAR for the first investment choice is \%. (Round to three decimal places.)
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