Question
You have $100 to invest. You invest $100 with Bank A for 1 year at an interest rate of 20%. Bank A compounds annually. You
You have $100 to invest. You invest $100 with Bank A for 1 year at an interest rate of 20%. Bank A compounds annually. You receive $120 at the end of the first year if you invest in Bank B. What is the EAR of Bank B if it compounds its interest continuously?
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-0078025365
