EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103164535
Author: DeMarzo
Publisher: PEARSON
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Chapter 27, Problem 16P
Summary Introduction

To determine: The effective annual rate.

Introduction:

Effective annual rate is the rate of interest earned or paid on any investment. It is the compounding interest over a period of time. The increase in number of compounding interest will lead to the increase in effective annual rate.

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