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Abraham invests 150 at the end of each year for 20 years at an effective interest rate of 14%. Interest is payable annually and is
Abraham invests 150 at the end of each year for 20 years at an effective interest rate of 14%. Interest is payable annually and is reinvested at an effective rate of 11%. (a) Calculate Abraham's accumulated interest at the end of 20 years. (b) If the series of invested amounts are made by Abraham into another fund without reinvesting to any other fund, and yields to same accumulated interest as in (a), calculate the effective interest rate for this fund
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