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This is incorrect: = [1 + (0.0765/2)] 2 - 1 = [1.03825] 2 - 1 = 1.077963063 - 1 = 0.077963063, or 7.80% This is
This is incorrect:
= [1 + (0.0765/2)]2 - 1
= [1.03825]2 - 1
= 1.077963063 - 1
= 0.077963063, or 7.80%
This is incorrect:
7.75% compounded semi-annually = (1 + 0.0375)^2 - 1 = 0.075
0.1% expense is charged semi-annually = (1 - 0.001)^2 - 1 = 0.0009
7.54% = 0.075 - 0.0009 = 0.0741
7.54%
(1 point) Pepper earns interest at a nominal rate of 7.75% compounded semi-annually. A 0.1% expense is charged semi-annually to the account immediately after the interest is earned. What annual effective yield is Pepper receivingStep by Step Solution
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