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Lada Lada
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6 years ago
Note: The calculations for this question were done using Excel's RATE function.
A property worth $15 000.00 is purchased for 10% down and semi-annual payments of $1750.00 for twelve years. What is the effective rate of interest if interest is compounded semi-annually?
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Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
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wrote...
6 years ago
Nper 24
Pmt -1750.00
PV 15000.00 * (1 - 0.10)
Result 13500
Effective annual rate f = 1.1213292 - 1 = 25.5737873%
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