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6. (a) A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate

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6. (a) A loan is made for five years at a simple interest rate of 12% per annum. What is the equivalent annual effective rate of discount during the fourth year of the loan? (b) Consider an account governed by simple interest at the simple interest rate s. The effective rate of interest in the fifth year is given to be 0.045. Find s

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