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USA National Bank offers a 9% nominal annual interest rate, compounded monthly on its savings accounts, while Western Regional Bank offers the same effective annual return, but interest is compounded quarterly. What nominal annual rate does Western Regional Bank offer on its savings accounts? 

          USA National Bank offers a 9% nominal annual interest rate, compounded monthly on its savings accounts, while Western Regional Bank offers the same effective annual return, but interest is compounded quarterly.  What nominal annual rate does Western Regional Bank offer on its savings accounts?
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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USA National Bank offers a 9% nominal annual interest rate, compounded monthly on its savings accounts, while Western Regional Bank offers the same effective annual return, but interest is compounded quarterly. What nominal annual rate does Western Regional Bank offer on its savings accounts?
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Transcript

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00:01 So a bank offers a savings account with monthly compounding.
00:08 That means that your frequency of compounding is 12 times per year.
00:13 And the stated annual rate that is compounded 12 times per year is 8%, or 0 .08.
00:26 Then the annual rate or effective rate is going to be 1 plus the compounded monthly rate divided by the number of months in a year, so 0 .08, 8 divided by 12 to the 12th, the number of compounding periods.
01:15 So this then is equal to, let's see here, 1 .0823 minus 1, which is 0 .0823, or 8 .23%.
01:40 It's your effective annual rate.
01:43 But we want to offer a savings account with quarterly compounding.
01:50 Then let's see if r is the quarterly compounded rate...
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