You have a savings account in which you leave the funds for one year without...
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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 0.050%, a weekly compounded rate of 0.265%, a monthly compounded rate of 1.25%, a quarterly compounded rater of 4.25%, a semiannually compounded rate of 7.5%, or an annually compounded rate of 16%?
What is the effective annual rate (EAR) of a daily compounded rate of 0.050%?
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