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You want to deposit money in a Bank. Bank As deposit offers a nominal annual rate of 5%, compounded daily. Bank Bs deposit offers you
You want to deposit money in a Bank. Bank As deposit offers a nominal annual rate of 5%, compounded daily. Bank Bs deposit offers you a nominal annual rate of 5.1%, compounded quarterly. If you want to deposit your money for a year, which bank offers a better deposit deal? Assume 365 days per year. To answer this question, you must calculate effective annual rates.
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