One of the new deposit construction of our competitor credit bank offers 12% annual nominal interest rate
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One of the new deposit construction of our competitor credit bank offers 12% annual nominal interest rate but pays all interest semi-annually. Our bank wants to create a deposit, which pays quarterly, and its effective rate of return is 1% higher than the rival's effective rate of return. What nominal interest rate should we determine for the new product?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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