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Time Value of Money: How to Calculate the Effective Annual Rate (EAR)

Started by KCLau · 10 months ago

You have RM7,000 in Fixed Deposit with CIMB Bank. Your FD is renewable every month and CIMB bank provides 3.2%p.a. interest. You let the FD renewed for 2 years. From the 3rd year onwards, the bank lowered the FD interest rate to 3.0% p.a. But you don't need the money, so you leave it the ... Continue reading »

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