. A bank gives a rate ofinterest of 2 percent perweek compounded daily.What would be the monthlyequivalent rate of returnassuming there are 4 weeksin a month.Mark all that apply☐ 8%8.12 %8.31 %

Interest rate = r = 2% per week = 2 / 7 = 0.2857% per dayperiod = n = 4 weeks = 4 * 7 = 28 days

Answered: A bank gives a rate of interest of 2…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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A bank gives a rate of interest of 2 percent per week compounded daily. What would be the monthly equivalent rate of return assuming there are 4 weeks in a month.