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Suppose That the Nominal Interest Rate Is 18

Question 53

Essay

Suppose that the nominal interest rate is 18%. Calculate the effective interest rate when interest is compounded:
(i)Annually
(ii)Semiannually
(iii)Quarterly
(iv)Monthly
(v)Biweekly
(vi)Weekly
(vii)Daily
(viii)Continuously

Correct Answer:

verifed

Verified

Basic formula for (i)- (vii)is ie = blured image - 1...

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