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Finance Assignment | Professional Writing

Author:
May 30th, 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.

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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.

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b) II only.

c) Both I and II.

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