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1.) What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly? 2.) Find the following values
1.) What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly?
2.) Find the following values assuming a regular, or ordinary, annuity:
a. The present value of $400 per year for ten years at 10 percent
b. The future value of $400 per year for ten years at 10 percent
c. The present value of $200 per year for five years at 5 percent
d. The future value of $200 per year for five years at 5 percent
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