Answered: Federal Savings Bank is offering a…

Federal Savings Bank is offering a 6-month CD (certificate of deposit) with a rate of 4.5% compounded daily. What is the equivalent annual percentage rate compounded annually on the CD?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 12P

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Federal Savings Bank is offering a 6-month CD (certificate of deposit) with a rate of 4.5% compounded daily. What is the equivalent annual percentage rate compounded annually on the CD?

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