Some banks advertise that money in their accounts is compounded continuously. To get an understanding of what this means, divide the year into 100,000 compounding periods per year. Apply the compound interest formula for finding future value to approximate what the effective yield would be if the compounding were done continuously for the stated nominal yield. nominal yield, 25% The effective annual yeild would be ___%

Some banks advertise that money in their accounts is compounded continuously. To get an understanding of what this means, divide the year into 100,000 compounding periods per year. Apply the compound interest formula for finding future value to approximate what the effective yield would be if the compounding were done continuously for the stated nominal yield. nominal yield, 25% The effective annual yeild would be ___%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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