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The Friendly Bank Wants to Earn an EAR of 12

Question 106

Multiple Choice

The Friendly Bank wants to earn an EAR of 12 percent on its consumer loans. The bank uses daily compounding. What rate is the bank most apt to quote on these loans? 


A) 11.76 percent 
B) 11.38 percent 
C) 11.33 percent 
D) 12.12 percent 
E) 12.00 percent 

Correct Answer:

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