What nominal rate must bank set

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Reference no: EM131622832

Bank A offers loans at an 8% nominal rate (its APR) but 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: EM131622832

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