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math

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calculate the effective yield, then rank them from highest yield to lowest yield:

12% compound annually
11.8% compound quarterly
11.9% compound semiannually
11.7% compound daily

  • math - ,

    I'll take the last one.
    The others are calculated similarly.

    Principal, P= $1 (for comparison purposes)
    Period = day
    Number of periods, n = 365
    Rate, R = 1+11.7%/365 = 1.000320548
    Amount after one year
    = PR^n
    = 1*1.000320548^365
    = 1.1241...
    The equivalent annual interest is 12.41%

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