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You make payments of $2500 quarterly for 10 years to your bank. Assuming an interest rate is 3% per year, compounded monthly, A. What

You make payments of $2500 quarterly for 10 years to your bank. Assuming an interest rate is 3% per year, compounded monthly, A. What is the effective quarterly interest rate? B. What is the principal? C. What is the quarterly interest?

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SOLUTION We can use the formula for the present value of an annuity to find the principal amount of ... blur-text-image

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