Bank offers three-year certificates of deposit

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Reference no: EM132007353

Your bank offers 3-year certificates of deposit with a stated rate of interest of 16.15% p.a., compounded quarterly. Your cousin (who works at Acme Bank and Trust, a competitor) wants to know what stated rate of interest you would require from them in order to switch your business to their bank. Acme's CD's are compounded on a monthly basis. What is the minimum stated interest rate you should ask for from Acme in order to make you indifferent to switching?

Reference no: EM132007353

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