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A friend was left $50,000 by his uncle. He has decided to put it into a savings account for the next year or so. He finds there are varying interest rates at savings institutions: 43/8% compounded annually, 41/4%compounded quarterly, and 41/8%compounded continuously. He wishes to select the savings institution that will give him the highest return on his money. What interest rate should he select?

Macroeconomics, Economics

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