Friday 8 June 2012

Northwest Bank pays a quoted annual (nominal) interest rate of 4.75%. However,

Northwest Bank pays a quoted annual (nominal) interest rate of 4.75%. However, it pays interest (compouned) daily using a 365-day year. What is the effective annual rate of return (APY)?
A. 4.75%
B. 5.02%
C. 4.86%
D. 3.61%
 

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