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The effective yield (or effective annual interest rate) for an investment is the simple interest rate that would yield at the end of one year

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The effective yield (or effective annual interest rate) for an investment is the simple interest rate that would yield at the end of one year the same amount as is yielded by the compounded rate that is actually applied. Approximate, to the nearest 0.01%, the effective yield corresponding to an interest rate of r% per year compounded quarterly and continuously. r=7 (a) quarterly "/0 (b) continuously %

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