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What Is the Effective Annual Rate,j,over 7 Years That Is

Question 5

Multiple Choice

What is the effective annual rate,j,over 7 years that is equivalent to j6 = 6% for the first two years,j12 = 9% for the next three years,and j2 = 4% for the last two years?


A) 6.00%
B) 6.31%
C) 6.69%
D) 6.91%

Correct Answer:

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