Gil wants to have $8,750 in 10 years. Use the present value formula to calculate how much he should invest now at 4% interest, compounded semiannually in order to re his goal. O $5,250.00 O $5,869.20 O $5,888.50 O $5.911.19

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.