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What is the annual effective interest rate

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Question - If an Ocampo Corporation issues P50 million of commercial paper with a maturity of 6 months at an annual interest rate of 7.5%, ignoring other charges other than the interest being deducted, what is the annual effective interest rate?

a. 3.75%

b. 7.79%

c. 3.90%

d. 7.50%

Reference no: EM132738989

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