A magazine offers a one-year subscription at a cost of 15 with renewal the following year 16.50. Also offered is a two-year subscription at a cost of 28. What is the effective annual interest rate that make two-year subscription equivalent to two successive one-year subscriptions?

Answer rating: 100% (QA)

Solution To find the effective annual interest rate EAR that makes the twoyear subscription equivale... View the full answer