Question: Please show step by step. Answer is .046 9. A loan of 1,000 is being repaid in ten years by semiannual installments of 50. plus

Please show step by step. Answer is .046

9. A loan of 1,000 is being repaid in ten years by semiannual installments of 50. plus interest on un-paid balance at 4% per annum compounded semiannually. The installments and interest Pay are reinvested at 5% per annum compounded semiannually. Calculate the annual effective yield rate of the loan. (A) 0.046 (B) 0.048 (C) 0.050 (D) 0.052 (E) 0.054

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