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For $ 1 0 , 0 0 0 , Kelly purchases an annuity - immediate that pays $ 4 0 0 quarterly for the next
For $ Kelly purchases an annuityimmediate that pays $ quarterly for the next years. Calculate the annual effective interest rate earned by Kellys investment. Note that to solve this problem, youll first need to compute a quarterly interest rate j which is actually i Once you obtain this, you can convert it to the annual effective rate i
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