a. Determine the annual effective rate (two decimals) equivalent to i(2) = 7% ; i(4) = 8%

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a. Determine the annual effective rate (two decimals) equivalent to i(2) = 7% ; i(4) = 8% and i(365) = 12%.

b. What simple interest rate is equivalent to i (365) = 8%, if money is invested for 3 years?

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Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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Posted Date: Nov 18, 2022 06:41 AM

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a. Determine the annual effective rate (two decimals) equivalent to i(2) = 7% ; i(4) = 8%

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Fundamental Accounting Principles

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