A bank pays a quoted annual (simple) interest rate of 8 percent. However, it pays interest (compounds)

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A bank pays a quoted annual (simple) interest rate of 8 percent. However, it pays interest (compounds) daily using a 365-day year. What is the effective annual rate of return?

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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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Posted Date: Jan 02, 2021 04:30 AM

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A bank pays a quoted annual (simple) interest rate of 8 percent. However, it pays interest (compounds)

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EAR 1 in n 1 Here i 8 n 365 days ... View the full answer

Fundamentals of Corporate Finance

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