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a) Sarah's VISA is advertised at 29% interest compounded daily. What is the effective interest rate on her credit card? (round to two decimal
a) Sarah's VISA is advertised at 29% interest compounded daily. What is the effective interest rate on her credit card? (round to two decimal places using 365 days per year) (1 mark) Calculation for Sarah (1 mark) b) Yasser has just won the Quebec Lottery with a jackpot of $1,000,000. His winnings will be paid out in 50 equal annual installments with the first payment made immediately! He believes the appropriate annual discount rate is 6%. How much will Yasser receive in payments? Hint: set to beginning. (1 mark) Calculation for Yasser: (1 mark)
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
