Essay
Carlos is the new assistant branch manager of a larger Florida-based bank and the branch manager has asked him a question to test his knowledge.The question is which rate should the bank advertise on monthly-compounded loans,the nominal annual percentage rate or the effective annual percentage rate? Which rate should the bank advertise on quarterly-compounded savings accounts? Explain.As a consumer,which would you prefer to see and why?
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A bank would rather advertise the annual...View Answer
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