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Example 5 - 1 Converting APR into an effective interest rate A firm invests $ 8 0 , 0 0 0 for six years in
Example Converting APR into an effective interest rate
A firm invests $ for six years in an account that pays interest at the rate of per annum.
How much money will the firm receive under each of the following scenarios?
Interest is compounded annually.
Interest is compounded semiannually.
Interest is compounded quarterlv.
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