Pay in order to make her exactly as well off as she would, Financial Management

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Pay in order to make her exactly as well off as she would

Your mother has asked you to decide between two accounts: the first pays a 16 % APR with semi-annual compounding. The second compounds on a quarterly basis. What nominal annual rate must the second account (i.e. the one that’s compounded quarterly) pay in order to make her exactly as well off as she would be if she chose the semi-annually compounded account?

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Financial Management: Pay in order to make her exactly as well off as she would

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