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A bank offers a stated annual interest of 7.10% on savings accounts, which is compounded monthly. The effective annual rate i

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Answer #1

Ans 1) 7.3357

EAR = ( 1 + r )^n - 1
Compounded Monthly
EAR= ( 1 + 7.10%/12)^12 - 1
EAR= 7.3357
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