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A bank is currently offering a savings account paying an interest rate of 9.10 percent compounded...

A bank is currently offering a savings account paying an interest rate of 9.10 percent compounded quarterly. It would like to offer another account, with the same effective annual rate, but compounded monthly.

What is the equivalent rate compounded monthly?

Equivalent rate ______%

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Answer #1

Cinen: nominal rate for quarterly compounding = 9.10% Effective annual sale (1 tahun ror nominal rate for quarterly compoundi9.4153% -) 12 12 1.094153 = + L (1.094153) 12 It 12 1.007527 – 1 = 12 مو 0.007527= 12 0.090319 9.0319% ompanion firstly we we

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