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To start business, ECON ENGINEERING has just borrowed $ 5 0 0 , 0 0 0 at 6 % , compounded quarterly, which will be

To start business, ECON ENGINEERING has just borrowed $

500, 000

6 %,

compounded quarterly, which will be repaid by quarterly payments of $

50, 000

each, with the first payment due in one year. What is the effective interest rate

used in the calculation of this loan?

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