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If a bank pays a 6% nominal rate, with monthly compounding, on deposits, what effective annual rate does the bank pay?

If a bank pays a 6% nominal rate, with monthly compounding, on deposits, what effective annual rate does the bank pay?

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CH190310_3940_FIN.docx

If a bank pays a 6% nominal rate, with monthly compounding, on deposits, what effective annual
rate does the bank pay?
Solutions:
Effective annual rate = (1 + i/m) m- 1
Where i – nominal rate
m...

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