A bank pays interest monthly with an EAR of 13%. What is the periodic interest rate applicable per month? A. 2.04% B. 1.22% C. 1.02% D. 0.82%
A bank pays interest monthly with an EAR of 13%. What is the periodic interest rate applicable per month? A. 2.04% B. 1.22% C. 1.02% D. 0.82%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A bank pays interest
monthly
with an EAR of
13%.
What is the periodic interest rate applicable
per month?
2.04%
1.22%
1.02%
0.82%
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