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10. (5 points) For $10,000, Kelly purchases an annuity-immediate that pays $400 quarterly for the next 10 years. Calculate the annual effective interest rate


 

10. (5 points) For $10,000, Kelly purchases an annuity-immediate that pays $400 quarterly for the next 10 years. Calculate the annual effective interest rate earned by Kelly's investment. [Note that to solve this problem, you'll first need to compute a quarterly interest rate j which is actually. Once you obtain this, you can convert it to the annual effective rate i.]

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