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Kim lends Katie $12,000. Katie repays the loan in two payments. The first payment is $4,440 at the end of year 1 and the second
Kim lends Katie $12,000. Katie repays the loan in two payments. The first payment is $4,440 at the end of year 1 and the second payment is $10,080 at end of year 2. Kim immediately reinvests the money she receive at time 1 at an annual effective rate of 9%.
Find the annual effective rate of interest on the loan. (4 decimal accuracy.)
Find Kim's annual effective yield. (4 decimal accuracy.)
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