Periodic interest rates. You have a savings account in which you leave the funds for one...

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Periodic interest rates. You have a savings account in which youleave the funds for one year without adding to or withdrawing fromthe account. Which would you rather have: a daily compounded rateof 0.055?%, a weekly compounded rate of 0.355?%, a monthlycompounded rate of 1.45?%, a quarterly compounded rater of 4.50?%,a semiannually compounded rate of 7?%, or an annually compoundedrate of 15?%?
What is the effective annual rate? (EAR) of a daily compoundedrate of 0.055?%?
___% ?(Round to two decimal? places.)
What is the EAR of a weekly compounded rate of 0.355?%?
?% ?(Round to two decimal? places.)
What is the EAR of a monthly compounded rate of 1.45?%?
% ?(Round to two decimal? places.)
What is the EAR of a quarterly compounded rate of 4.50?%?
?% ?(Round to two decimal? places.)
What is the EAR of a semiannually compounded rate of 7?%?
_?% (Round to two decimal? places.)
What is the EAR of an annually compounded rate of 15?%?
_____?% ?(Round to two decimal? places.)
Which periodic rate would you rather have for your savings?account? ?(Select the best? response.)
A. Upper A quarterly compounded rate of 4.50%.
B. Upper A monthly compounded rate of 1.45%.
C. An annually compounded rate of 15%.
D. Upper A daily compounded rate of 0.055%.
E. Upper A weekly compounded rate of 0.355%.
F. Upper A semiannually compounded rate of 7%.

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4.3 Ratings (582 Votes)

Daily Periodic Rate 0055 Number of Periods in a Year 365 Effective Annual Rate 1Periodic RateNumber of Periods in a Year 1 100055365 1 02222 or 2222 Weekly Periodic Rate 0355 Number of See Answer

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Periodic interest rates. You have a savings account in which youleave the funds for one year without adding to or withdrawing fromthe account. Which would you rather have: a daily compounded rateof 0.055?%, a weekly compounded rate of 0.355?%, a monthlycompounded rate of 1.45?%, a quarterly compounded rater of 4.50?%,a semiannually compounded rate of 7?%, or an annually compoundedrate of 15?%?What is the effective annual rate? (EAR) of a daily compoundedrate of 0.055?%?_________% ?(Round to two decimal? places.)What is the EAR of a weekly compounded rate of 0.355?%?__________?% ?(Round to two decimal? places.)What is the EAR of a monthly compounded rate of 1.45?%?__________% ?(Round to two decimal? places.)What is the EAR of a quarterly compounded rate of 4.50?%?__________?% ?(Round to two decimal? places.)What is the EAR of a semiannually compounded rate of 7?%?___________?% (Round to two decimal? places.)What is the EAR of an annually compounded rate of 15?%?___________?% ?(Round to two decimal? places.)Which periodic rate would you rather have for your savings?account? ?(Select the best? response.)A. Upper A quarterly compounded rate of 4.50%.B. Upper A monthly compounded rate of 1.45%.C. An annually compounded rate of 15%.D. Upper A daily compounded rate of 0.055%.E. Upper A weekly compounded rate of 0.355%.F. Upper A semiannually compounded rate of 7%.