Question: a. Determine the annual effective rate (two decimals) equivalent to i(2) = 7% ; i(4) = 8% and i(365) = 12%. b. What simple interest

a. Determine the annual effective rate (two decimals) equivalent to i(2) = 7% ; i(4) = 8% and i(365) = 12%.

b. What simple interest rate is equivalent to i (365) = 8%, if money is invested for 3 years?

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