Business Homework Solutions
#120105
Interest Rate
You are considering an investment with a quoted return of 10% per year. If interest is compounded daily, what is the effective return on this investment?
a. 1.11%
b. 10.00%
c. 10.25%
d. 10.47%
e. 10.52%
The solution explains how to calculate the effective rate of return.
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