Question: You are given a loan on which interest is charged over a 4-year period, as follows: (i) an effective rate of discount of 11% for

You are given a loan on which interest is charged over

You are given a loan on which interest is charged over a 4-year period, as follows: (i) an effective rate of discount of 11% for the first year; (ii) a nominal rate of discount of 4% compounded every 2 years for the second year; (iii) a nominal rate of interest of 7% compounded semiannually for the third year; and (iv) a force of interest of 11% for the fourth year. Calculate the annual effective rate of interest over the 4-year period. [1.b-f #13] 0.075 0.092 0.084 0.088 0.079

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