Borrowing Funds Assignment | Homework For You
May 27th, 2020
Which of the following statement(s) is/are most likely to be true?
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I. If you were borrowing funds from a bank, and the quoted interest rate was 8% p.a., you would be better off if the bank used quarterly compounding rather than daily compounding.
II. If you were depositing funds at a bank and the quoted interest rate was 8% p.a., with interest compounded daily, you would be better off if the bank used a 360-day basis rather than a 365-day basis for compounding the interest rate
a) I only.
b) II only.
c) Both I and II. Get Finance homework help today