What interest rate compounded daily will yield an effective interest rate of 2%? A rate of...

Question

Question

Answer 1

Answer #1

Effective rate of interest = (1+r/n)^n -1

n= number of periods
r = interest rate

2%= (1+r/365) ^365 - 1

r =1.98%

Correct Answer =1.98%

Answer 2

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