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you can use the formulas above to solve the following. remember bi annual is every 2 years unlike semi annual which is twice PER year
you can use the formulas above to solve the following. remember bi annual is every 2 years unlike semi annual which is twice PER year
If the effective annual interest rate is 15% then what is the equivalent:
a) Semi-annual rate compounded semi-annually
b) Annual rate compounded quarterly
c) Annual rate compounded continuously
d) Annual rate compounded every decade
e) Bi-annual rate compounded bi-annually
1st.:2nd.:Or:EAR=(1+r/m)m1EPR=(1+EAR)(1/s)1EPR=(1+r/m)(m/s)1
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