Answered: Find the annual simple interest rate…

Find the annual simple interest rate equivalent to an annual simple discount rate of 5.3% over a term of 7 years. Round your answer to the nearest tenth of a percent.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 8MC: Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future...

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Question

Find the annual simple interest rate equivalent to an annual
simple discount rate of 5.3% over a term of 7 years.
Round your answer to the nearest tenth of a percent.

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