A financial institution is willing to lend you $400. However, $450 is repaid at the end of one week. (a) What is the nominal interest rate? (b) What is the effective annual interest rate?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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ISBN:9780079039897
Author:Carter
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Chapter7: Exponents And Exponential Functions
Section: Chapter Questions
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A financial institution is willing to lend you $400. However, $450 is repaid at the end of one week.
(a) What is the nominal interest rate?
(b) What is the effective annual interest rate?
Transcribed Image Text:A financial institution is willing to lend you $400. However, $450 is repaid at the end of one week. (a) What is the nominal interest rate? (b) What is the effective annual interest rate?
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