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Your current bank offers interest on deposits at 5% compounded annually.Western Bank would like to lure you to their bank

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Your current bank offers interest on deposits at 5% compounded annually.Western Bank would like to lure you to their bank and will offer you daily compounding. 



What stated APR must Western Bank offer for you to be indifferent between the two banks' deposit rates?

Expert Answer:

Answer rating: 100% (QA)

To determine the equivalent annual interest rate for daily compounding we can use the following form View the full answer


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Related Book For  answer-question
Corporate Finance A Focused Approach

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: April 14, 2023 22:55:46
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