The Piccadilly saving and loan offers a saving account with a quoted rate of 6% which is compounded 4 times per year. Not to be outdone, the Thames Embankment Bank wants to offer a competing account with a daily compounding. What quote rate does Thames have to offer in order to the produce the same effective interest rate as offered by Piccadilly? Assume a 365 - day year and express your answer in percentage form rounded to two decimal places (e.g. 14.56%)

What quoted rate does Thames have to offer in order to produce the same effective interest rate as offered by Piccadilly? 

Answer rating: 100% (QA)

To find the quoted rate that Thames Embankment Bank needs to offer in order to produce the same effe... View the full answer