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Question
A bank pays a quoted annual (simple) interest rate of 8 percent. However, it pays interest (compounds) daily using a 365-day year. What is the effective annual rate of return?
a. 7.86%
b. 7.54%
c. 8.57%
d. 8.33%
e. 9.21%
Answer
This answer is hidden. It contains 146 characters.
Related questions
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Q:
Refer to Foxy Ladies Investment Club. What was the portfolio's simple arithmetic average return per year from 2010 through 2012?
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