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Problem 3. Determine the value of the semi-annual effective interest rate that is derived from each of the nominal rates listed: (a) Nominal rate of

Problem 3. Determine the value of the semi-annual effective interest rate that is derived from each of the nominal rates listed: (a) Nominal rate of 18% per year with monthly capitalization (b) 12% annual nominal rate with quarterly capitalization (c) 14% semi-annual nominal rate with monthly capitalization Concept Answer (a) Report the semi-annual effective interest rate given the nominal rate of 18% per year with monthly capitalization Rate =% (a) Report the semi-annual effective interest rate given the nominal rate of 12% per year with quarterly capitalization Rate =% (a) Report the semi-annual effective interest rate given the nominal rate of 14% semi-annual with monthly capitalization Rate =%

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