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You were asked to pay an annual road fund tax. You have two payment options: either pay the full which currently is $135.00 per year
You were asked to pay an annual road fund tax. You have two payment options: either pay the full which currently is $135.00 per year or you can pay it in two instalments of $74.25, the first immediately and the second six months later. What would be the effective annual rate of interest that would make you indifferent between these two payments plan.
(please show your work, NO excel)
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