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Compounded interest rates

AN INTEREST RATE OF 2% PER MONTH IS THE SAME AS:

A. 24% PER YEAR
B. A NOMINAL 24% PER YEAR, COMPOUNDED MONTHLY ????
C. AN EFFECTIVE 24% PER YEAR, COMPOUNDED MONTHLY ???
D. BOTH ''A'' and ''B''

Solution Preview

2% per month would mean 24% per year if compounded once per year

If ...

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