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    Financial Management Theory and Practice Study Set 4
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    Exam 4: Time Value of Money
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    Pacific Bank Pays a 4
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Pacific Bank Pays a 4

Question 145

Question 145

Multiple Choice

Pacific Bank pays a 4.50% nominal rate on deposits, with monthly compounding.What effective annual rate (EFF%) does the bank pay?


A) 3.72%
B) 4.13%
C) 4.59%
D) 5.05%
E) 5.56%

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