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Your neighbor offers you an investment opportunity which will pay you a single lump sum of $2,000 five years from today. The investment requires a
Your neighbor offers you an investment opportunity which will pay you a single lump sum of $2,000 five years from today. The investment requires a single payment of $1,500 today. If the interest rate you earning is compounding semiannually, what is the semiannually compounding interest rate (i.e., the nominal interest rate or r2 ) you will earn on this investment?
5.84% | ||
33.33% | ||
2.92% | ||
5.92% |
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