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Man-Duen has an annuity paying $2,500.00 at the start of each quarter for 9 years. The interest rate is r(52) = 7.675%. After 6 years

Man-Duen has an annuity paying $2,500.00 at the start of each quarter for 9 years. The interest rate is r(52) = 7.675%. After 6 years the interest rate changes to 8.175% (same compounding).

a) What is the effective interest rate per period before the rate change?

b) What is the effective interest rate per period after the rate change?

c) What is the present value of his annuity?

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