INSTRUCTIONS FOR USING THE RECONCILIATION …
An interest rate is quoted as 5% per annum with semiannual compounding. What is the equivalent rate with (a) annual compounding, (b) monthly compounding, and (c) continuous compounding. With annual compounding the rate is or 5.0625% . With monthly compounding the rate is or 4.949%. With continuous compounding the rate is or 4.939%. Problem 4.30. ................
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