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The nominal interest rate charged on an investment is 7,2 % compounded half yearly. Calculate the annual effective interest rate for the investment.
in Grade 12 Technical Maths by Diamond (40.1k points) | 7 views

1 Answer

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i eff = (1 + i/m)^m - 1

         =  (1 + 0.072/2)^2 - 1

           = 0.073296

            = 7.33%
by Silver Status (31.3k points)
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