Acme in order to make you indifferent to switching

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Reference no: EM131884129

Your bank offers 3 year certificates of deposit with a stated rate of interest of 13.45% p.a., compounded quarterly. Your cousin (who works for Acme bank and Trust, a competitor) wants to know what stated rate of interest you would require from them in order to switch your business to their bank. Acme's cd's are compounded on a monthly basis. What is the minimum stated interest rate you should ask for from Acme in order to make you indifferent to switching? (round your answer to 2 decimals)

Please be correct and show work!

Reference no: EM131884129

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