Question
Sarahs VISA is advertised at 29% interest compounded daily. What is the effective interest rate on her credit card? (round to two decimal places using
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Sarahs VISA is advertised at 29% interest compounded daily. What is the effective interest rate on her credit card? (round to two decimal places using 365 days per year) (1 mark)
Calculation for Sarah (1 mark)
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Yasser has just won the Quebec Lottery with a jackpot of $1,000,000. His winnings will be paid out in 50 equal annual installments with the first payment made immediately! He believes the appropriate annual discount rate is 6%. How much will Yasser receive in payments? Hint: set to beginning. (1 mark)
Calculation for Yasser: (1 mark)
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
