Question
You plan to borrow some money from a bank account. Which of the following banks provides you with the lowest effective rate of interest? Bank
You plan to borrow some money from a bank account. Which of the following banks provides you with the lowest effective rate of interest?
| Bank 1; 6.1% with annual compounding. | ||
| Bank 2; 6.0% with monthly compounding. | ||
| Bank 3; 6.0% with quarterly compounding. | ||
| Bank 4; 6.0% with daily (365-day) compounding. |
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
