Question: 24) Solve the problem. Determine the effective annual yield for $1 invested for 1 year at4.5% compounded monthly. 25) Solve the problem. Determine the effective

24)

Solve the problem.

Determine the effective annual yield for $1 invested for 1 year at4.5% compounded monthly.

25)

Solve the problem.

Determine the effective annual yield for $1 invested for 1 year at3.5% compounded semiannually.

26)

Solve the problem.

You have a choice of two accounts in which to invest your money for one year. Account A pays4.6% simple interest rate and account B pays3.5% interest compounded daily. Compute the effective annual yield of account B and determine which account has the better rate. (Assume that there are 360 days in a year.)

a The rates are the same.

b Account B

c There is not enough information to decide.

d Account A

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