Rick is part of an unusual bank, he comes in each quarter and spins a wheel to determine the amount of interest he will earn that quarter between 0 and 4%. Last year, he spun the wheel and received quarterly interest of 2%, then 3%, then 0%, then 4%. What was the total EAR of Rick's account last year? Choose the closest. a) 9.0% b) 9.3% c) 10.1% d) 11.2%
Rick is part of an unusual bank, he comes in each quarter and spins a wheel to determine the amount of interest he will earn that quarter between 0 and 4%. Last year, he spun the wheel and received quarterly interest of 2%, then 3%, then 0%, then 4%. What was the total EAR of Rick's account last year? Choose the closest. a) 9.0% b) 9.3% c) 10.1% d) 11.2%
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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Rick is part of an unusual bank, he comes in each quarter and spins a wheel to determine the amount of interest he will earn that quarter between 0 and 4%. Last year, he spun the wheel and received quarterly interest of 2%, then 3%, then 0%, then 4%. What was the total EAR of Rick's account last year? Choose the closest.
a) 9.0%
b) 9.3%
c) 10.1%
d) 11.2%
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