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2. Suppose you pay $473 as interest on $7,000 principal for 9 months. What is the Annual Interest rate?
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4. An initial investment of $1,500,000 is expected to generate $500,000 per year for 6 years. Calculate the discounted payback period of the investment if the discount rate is 10%.

Answer rating: 100% (QA)

1 To calculate the annual interest rate we need to use the formula for simple interest Interest Prin... View the full answer