A bank pays 10% nominal annual interest on special three-year certificates. What is the effective annual interest

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A bank pays 10% nominal annual interest on special three-year certificates. What is the effective annual interest rate if interest is compounded?

(a) Every three months?

(b) Daily?

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Engineering Economics

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: Mar 01, 2010 04:44 AM

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A bank pays 10% nominal annual interest on special three-year certificates. What is the effective annual interest

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a Effective Interest Rate 1 i m 1 1025 4 1 01038 1038 b E...View the full answer

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