A bank advertises that it pays interest on savings accounts at the rate of 31% compounded...
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A bank advertises that it pays interest on savings accounts at the rate of 31% compounded daily. Find the effective rate if the bank assumes that a year consists of (a) 360 days or (b) 365 days in determining the daily rate. Assume that compounding occurs 365 times a year. A bank advertises that it pays interest on savings accounts at the rate of 31% compounded daily. Find the effective rate if the bank assumes that a year consists of (a) 360 days or (b) 365 days in determining the daily rate. Assume that compounding occurs 365 times a year.
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To find the effective rate we need to calculate the amount of interest earned after one year taking ... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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