For problems 2, 3, 4 and 5, answer 3 of these questions. (Wr…
For problems 2, 3, 4 and 5, answer 3 of these questions. (Write “SKIP” to the one you do not want graded) The Bank A is promising to pay 8% compounded Monthly. Bank B is across the street. However, Bank B quotes its rates as compounded quarterly. What rate must bank B advertise (compounded quarterly) so that depositors are indifferent between the 2 banks? (in other words, 8% compounded quarterly is the same as X% compounded monthly).