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Compounding to give highest effective rate of interest

25. The stated rate of interest is 10%. Which form of compounding will give the highest effective rate of interest?
A. annual compounding
B. monthly compounding
C. daily compounding
D. continuous compounding
E. It is impossible to tell without knowing the term of the loan.

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25. The stated rate of interest is 10%. Which form of compounding ...

Solution Summary

Compounding interest is investigated.

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