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An Investment Earns the Following Interest Rates: 10% Simple Interest

Question 118

Multiple Choice

An investment earns the following interest rates: 10% simple interest for 24 months,followed by 8% compounded quarterly for 36 months.What is the equivalent nominal rate compounded semi-annually that is earned over the 5-years?


A) 7.34%
B) 7.49%
C) 8.58%
D) 8.76%

Correct Answer:

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