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Smith has debts of 1500 due now and 1510 due two years from now. He proposes to repay them with a single payment of 3000

Smith has debts of 1500 due now and 1510 due two years from now. He proposes to repay them with a single payment of 3000 one year from now.

What is the implied annual effective interest rate if the replacement payment is accepted as equivalent to the original debt?

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