Question: 5. Effective Rates. Find the effective rate for each type of investment. Round your answers the nearest tenth of a percent. a) A savings

5. Effective Rates. Find the effective rate for each type of investment.

5. Effective Rates. Find the effective rate for each type of investment. Round your answers the nearest tenth of a percent. a) A savings account that pays 8 % % compounded daily. EFFECTIVE RATE: b) A bond that costs $2000 and in twelve years is redeemable for $5250. EFFECTIVE RATE: c) A mutual fund that quadruples every 17 years. EFFECTIVE RATE: d) A fixed-rate certificate of deposit that pays 8% interest, compounded continuously. EFFECTIVE RATE:

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