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An Internet service company offers its subscribers the option of paying a lump sum of $ 1 9 0 today for a year of service
An Internet service company offers its subscribers the option of paying a lump sum of $ today for a year of service or alternative of paying $ every second month for a year. What is the interest rate of the bimonthly payment scheme which makes the present value of the payments equal to the lump sum payment? The first $ payment starts at the beginning of the bimonthly periods.
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