Calculate the effective annual rate

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Reference no: EM132757344

Question: A company plans to deposit X thousand dollars in a fund, which will return 15% per year compounded daily. If the X is the last two digits of your student ID number, find the amount of X thousand dollars after 8 years, using both the (a) effective annual rate and the (b) effective interest rate per compounding period (CP). Provide the corresponding cash flow diagrams. (c) Also use excel functions and compare your results with part (a) and (b).

Reference no: EM132757344

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