A Bank Offers an Interest Rate of 4% Per Annum

question 3

Multiple Choice

A bank offers an interest rate of 4% per annum compounded daily(assuming 365-day year) . What is the effective rate?

• A) 2.88%
• B) 4.01%
• C) 4.28%
• D) 3.04%
• E) 4.08%

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