Problems effective annual rate

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Reference no: EM131206418

Problems Effective Annual Rate.

Bank A Offers loans at an 8% nominal rate (its APR) buat requires that interest be paid quarterly, that is, it uses quarterly compounding. Bank B wants to charge the same effective rate on its loans but it wants to collect interest on a monthly basis, that is, use monthly compounding. What nominal rate must Bank B set ?

Reference no: EM131206418

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