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12 March, 01:26

What is the effective annual yield of an investment that offers a nominal rate of 5% compound monthly? Daily?

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  1. 12 March, 03:45
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    Monthly

    R = (1+0.05/12) ^12) - 1) * 100

    R=5.12%

    Daily

    R = (1+0.05/360) ^360) - 1) * 100

    R=5.13%
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