Jack deposited 500000 into a bank for 6 months at the end, Ask an Expert

Economics

Jack deposited $500,000 into a bank for 6 months. At the end of that time, he withdrew the money and received $525,000. If the bank paid interest based on continuous compounding:

(a) What was the effective annual interest rate?

(b) What was the nominal annual interest rate?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91996448

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