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Bill deposits 200 into a fund for 18 years. The fund pays interest at the end of each 6-month period at a nominal rate of
Bill deposits 200 into a fund for 18 years. The fund pays interest at the end of each 6-month period at a nominal rate of i convertible semiannually. The interest payments are reinvested in a separate fund earning interest at an annual effective rate of 5%. During the 18-year period, Bill earns an annual effective yield of 7%. Calculate i. [5.a-c #13] 9.11% 8.36% 8.11% 8.86% 8.61%
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