Sam uses the Westport Commercial Bank which pays an annual nominal rate of 7.74% but it...

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Sam uses the Westport Commercial Bank which pays an annual nominal rate of 7.74% but it compounds the money daily. Use 365 days in a year to calculate the EAR and enter as a percent to two places as in xx.xx %. Hint: To get this correct, you can not truncate intermediate calculations because you will not be precise enough in your final answer. To avoid problems store intermediate results in memory or write down all the significant digits and then renter all of them to continue. Sam uses the Westport Commercial Bank which pays an annual nominal rate of 7.74% but it compounds the money daily. Use 365 days in a year to calculate the EAR and enter as a percent to two places as in xx.xx %. Hint: To get this correct, you can not truncate intermediate calculations because you will not be precise enough in your final answer. To avoid problems store intermediate results in memory or write down all the significant digits and then renter all of them to continue.

Answer rating: 100% (QA)

EAR or effective annual rat... View the full answer