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    Compounding to give highest effective rate of interest

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    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.

    $2.49

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