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What Is the Equivalent Effective Annual Rate,j,over 8-Years That Is

Question 117

Multiple Choice

What is the equivalent effective annual rate,j,over 8-years that is equivalent to j6 = 8% for the first three years,j12 = 6% for the next three years,and j2 = 5% for the last two years?


A) 6.02%
B) 6.13%
C) 6.50%
D) 6.67%

Correct Answer:

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