Identify the following interest rate statements as either nominal or effective: (a) 1.3% per month; (b) 1%
Question:
Identify the following interest rate statements as either nominal or effective:
(a) 1.3% per month;
(b) 1% per week, compounded weekly;
(c) Nominal 15% per year, compounded monthly;
(d) Effective 1.5% per month, compounded daily;
(e) 15% per year, compounded semiannually.
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