You would like to invest your money at one of the three main banks in your area. The banks offer different interest rates: Bank A offers an annual interest rate of 13% compounded daily Bank B annual interest rate of 10% compounded monthly Bank C annual interest rate of 10% compounded quarterly Please calculate their respective effective annual interest rates in order to select the correct statement: Bank B's effective annual interest rate is 0.09% higher than Bank C's per annum Bank A's effective annual interest rate is 0.2% lower than Bank B's per annum The difference between the effective annual interest rates for all banks is less than or equal to 0.5% per annum Bank (C)'s effective annual interest rate is 0.03% higher than Bank A's effective annual interest rate per annum
You would like to invest your money at one of the three main banks in your area. The banks offer different interest rates: Bank A offers an annual interest rate of 13% compounded daily Bank B annual interest rate of 10% compounded monthly Bank C annual interest rate of 10% compounded quarterly Please calculate their respective effective annual interest rates in order to select the correct statement: Bank B's effective annual interest rate is 0.09% higher than Bank C's per annum Bank A's effective annual interest rate is 0.2% lower than Bank B's per annum The difference between the effective annual interest rates for all banks is less than or equal to 0.5% per annum Bank (C)'s effective annual interest rate is 0.03% higher than Bank A's effective annual interest rate per annum
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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