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10. You have been quoted a rate of 12% per annum on an investment. The inflation rate is 4% per annum. Answer the following a)
10. You have been quoted a rate of 12% per annum on an investment. The inflation rate is 4% per annum. Answer the following a) What is your quoted rate called? b) What is the real interest rate? c) What is the effective interest rate if the interest will be paid annually? d) What is the effective interest rate if the interest will be paid semi-annually
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