1. If the effective annual interest rate is 15% then what is the equivalent: Semi-annual rate compounded semi-annually Annual rate compounded quarterly Annual rate compounded continuously Annual rate compounded every decade
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Step 1: To find the equivalent semi-annual rate compounded semi-annually, we need to divide the effective annual interest rate by 2 (since there are 2 semi-annual periods in a year) and then convert it to a semi-annual rate compounded semi-annually. Show more…
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