If I have $ 100.000 to invest in 6 different banks with the same annual rate of

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If I have $ 100.000 to invest in 6 different banks with the same annual rate of 6%; but with different frequency of compounding: Bank A annual compounding, Bank B semiannual, Bank C quarterly, Bank D monthly, Bank E daily, and Bank F continuously.

Q1: Calculate the effective annual rate for each bank.

Q2: Calculate the one-year Future Value for each bank.

Related Book For answer-question

Organic Chemistry

ISBN: 9781936221349

6th Edition

Authors: Marc Loudon, Jim Parise

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Posted Date: Mar 12, 2024 04:02 AM

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If I have $ 100.000 to invest in 6 different banks with the same annual rate of

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Calculating the effective annual rate EAR and future value FV for each bank based on the compounding ... View the full answer

Organic Chemistry

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