(Answered) What is the minimum stated interest rate

Finance

Problem: Your bank offers 3-year certificates of deposit with a stated rate of interest of 16.14% p.a., compounded quarterly. Your cousin (who works at Acme Bank and Trust, a competitor) wants to know what stated rate of interest you would require from them in order to switch your business to their bank. Acme's CD's are computed on a monthly basis. What is the minimum stated interest rate you should ask for from Acme in order to make you indifferent to switching? Be sure to support your response with specifics.

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