Question

Homework! Chapter 5 Homework Save Score: 0 of 1 pt 1 of 12 (5 complete) HW Score: 25%, 3 of 12 pts P5-2 (similar to) IE Question Help Periodic interest rates. You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.045%, a weekly compounded rate of 0.325%, a monthly compounded rate of 1.15%, a quarterly compounded rate of 4.50%, a semiannually compounded rate of 9%, or an annually compounded rate of 15%? What is the effective annual rate (EAR) of a daily compounded rate of 0.045%? % (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer Check Answer Clear All 6 parts remaining
please answer and explain

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

EAR = (1+r)^m - 1

PV, FV, ANNUITY (Autosaved) Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins Σ AutoSum - Cut AS EWrap Text Calibri 11 General ECopy Fill в IU Merge & Center Insert Delete Format Paste +.0 .00 Conditional Format Cell Sort & Find & % .00 0 Format Painter Clear Filter Select Formatting as Table Styles Number Clipboard Font Alignment Styles Cells Editing CE206 CA CD CL CB CC CE CF CG CH CI CJ CK 188 189 190 191 192 PERIODIC EFFECTIVE 193 period option RATE 194 ANNUAL RATE 195 17.85% (1+0.00045)^365 - 1 18.38% (1+0.003 25)^52 1 Daily weekly 0.045% 196 0.325% 197 14.71% (1+0.01 15)^12 - 1 19.25% (1+0.045)^4 - 1 18.81% (1+0.09)^2 - 1 15.00% (1+0.15)^1 - 1 198 Monthly 1.15% Quarterly 4.50% 199 semi annual 9.00% 200 annual 201 15% 202 compounding 203 Quarterly answer 204 205 206 207 208 pv, fv, annuity loan with points profit margin s3 LOAN OPTIONS CAP STRU VALUE LOCK BOX DILUTION DOLLAR COST AVG EXPO NPER APR CPI S2 ear FVA pva Rea erences 120% WA 05:14 ENG 12-11-2019