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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.

    © BrainMass Inc. brainmass.com December 15, 2022, 8:31 pm ad1c9bdddf
    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

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