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You are in a finance course, your great grandpa left you with $100,000; you have spent $75,000 of this money. You plan putting the remaining
You are in a finance course, your great grandpa left you with $100,000; you have spent $75,000 of this money. You plan putting the remaining $25,000 in a savings account. One bank quoted you a 2.00% rate compounded quarterly and another bank quoted you 1.90% rate compounded semi-annual (twice a year). Compute the effective interest rate (EAR) for each banks.
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