You are interested in an investment project that pays 10% of interest rate compounded every four...
You are interested in an investment project that pays 10% of interest rate compounded every four weeks. Assume a 52-week year. What percent return would you effectively earn?
Homework Answers
What percent return would you effectively earn?
=(1+rate/compounding periods per year)^compounding periods per
year-1
=(1+10%/13)^13-1
=10.4748%
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