The treasurer of National Credit union proposes changing the method of compounding interest on premium savings accounts to daily compounding If the current rate is 6 compounded quarterly, what nominal rate should the treasurer suggest to the board of directors to maintain the same effective rate of...

Value of 1 in one year at 6 compounded quarterly FV 1 1015 4 1061364 Value f ...

The treasurer of National Credit union proposes changing the method of compounding interest on premium savings accounts

Question:

The treasurer of National Credit union proposes changing the method of interest on premium savings accounts to daily If the current rate is 6% compounded quarterly, what nominal rate should the treasurer suggest to the board of directors to maintain the same effective rate of interest?
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...