You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.035%, a weekly compounded rate of 0.305%, a monthly compounded rate of 1.25%, a quarterly compounded rate of 4.00%, a semiannually compounded rate of 8%, or an annually compounded rate of 15%?
What is the effective rate (EAR) of a daily compounded rate of 0.035%?
What is the effective rate (EAR) of a weekly compounded rate of 0.305%?
What is the effective rate (EAR) of a monthly compounded rate of 1.25%?
What is the effective rate (EAR) of a quarterly compounded rate of 4.00%
What is the effective rate (EAR) of a semiannually compounded rate of 8%?
What is the effective rate (EAR) of an annually compounded rate of 15%?