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Bill Baxter has $21,000 to invest for a year. He can lend it to his sister who has agreed to pay 6% simple interest for
Bill Baxter has $21,000 to invest for a year. He can lend it to his sister who has agreed to pay 6% simple interest for the year. Or, he can invest it with a bank at 4% compounded quarterly for the year. How much additional interest would the simple interest loan to his sister generate? Find the effective interest rate for both investments
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