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of Compounding [time] 1 2 4 365
EAR [%] 8.40 8.58 8.67 8.76
FV [$] 19,512 19,554 19,560 19,577
Implication: provided same other factors, the higher the compounding frequency, the higher the EAR & the FV become.
e) In order to be as competitive as offering of Bay State Saving & Loan, which means: FVFNB = FVSBL = $19,577 => $18,000 * (1+ iN/2)^2 = $19,577 =>iN(FNB)= 8...
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of Compounding [time] 1 2 4 365
EAR [%] 8.40 8.58 8.67 8.76
FV [$] 19,512 19,554 19,560 19,577
Implication: provided same other factors, the higher the compounding frequency, the higher the EAR & the FV become.
e) In order to be as competitive as offering of Bay State Saving & Loan, which means: FVFNB = FVSBL = $19,577 => $18,000 * (1+ iN/2)^2 = $19,577 =>iN(FNB)= 8...
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