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Question
Pacific Bank pays a 4.50% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%) does the bank pay?a. 3.72%
b. 4.13%
c. 4.59%
d. 5.05%
e. 5.56%
Answer
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Which of the following is not correct for a firm with seasonal sales and customers who all pay promptly at the end of 30 days?
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