effective annual interest rate
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1) A company makes a $1,000 investment every year on December 31. Interest is 10% per year, but compounded semi-annually (every 6 months). They make 10 investments in all.
a) Find the effective annual interest rate,
Please see the attached file.
https://brainmass.com/economics/investments/effective-annual-interest-rate-297086
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1) A company makes a $1,000 investment every year on December 31. Interest is 10% per year, but compounded semi-annually (every 6 months). They make ...
Solution Summary
The response provides the steps to compute the effective annual interest rate.
$2.49