.If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if interest is compounded quarterly? Select one: a. 13.10% b.
.If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if interest is compounded quarterly? Select one: a. 13.10% b.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 1P
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7.If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if interest is compounded quarterly?
Select one:
a.
13.10%
b.
12.50%
c.
13.03%
d.
13.05%
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