Periodic interest rates. you have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. which would you rather have: a daily compounded rate of 0.040%, a weekly compounded rate of 0.285%, a monthly compounded rate of 1.35%, a quarterly compounded rater of 3.50%, a semiannually compounded rate of 8.5%, or an annually compounded rate of 18%? what is the effective annual rate (ear) of a daily compounded rate of 0.040%?
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