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First, define the concept of the periodic interest rate. Next, explain what happens to the periodic interest rate as the number of compounding periods per
First, define the concept of the periodic interest rate. Next, explain what happens to the periodic interest rate as the number of compounding periods per year increases (that is, when m). Finally, define the concept of the effective rate of interest, EFF, and also explain in what special case (or instance) the periodic rate would equal the effective rate of interest
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