Suppose a savings and loan pays a nominal rate of 3.2% on savings deposits. Find the...
Suppose a savings and loan pays a nominal rate of 3.2%
on savings deposits. Find the effective annual yield if interest is compounded annually.
Homework Answers
Effective Annual yield = (1+nominal yield)^number of compounds - 1
= (1+3.2%)^1 - 1
= 3.2%
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