Find the effective annual interest rates of the given nominal annual interest rates. Round your answers to the nearest 0.01%. HINT [See Quick Example 5.] 50% compounded every minute (assume 365 days per year)
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Step 1
There are 60 minutes in an hour, 24 hours in a day, and 365 days in a year. So, there are 60*24*365 = 525,600 minutes in a year. The nominal interest rate is 50%, or 0.50 in decimal form. Since it's compounded every minute, we need to divide this by the number of Show more…
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