Question
You are investing a sum of money for 4 years. You earn a simple interest rate of r = 10% for the first 2 years
You are investing a sum of money for 4 years. You earn a simple interest rate of r = 10% for the first 2 years and j12 = 6% for the last 2 years. What is the equivalent effective annual rate of return, j, you earn over each of the 4 years?
- A.
7.98%
- B.
8.81%
- C.
8.07%
- D.
7.84%
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
