What is the effective annual interest rate in the problem

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Reference no: EM132157864

Question: The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaperis published 252 days per year (5 days per week, except holidays). If a 10% nominal annual interest rate, compounded quarterly, is used:

(a) What is the effective annual interest rate in this problem?

(b) Compute the equivalent interest rate per 1/252 of a year.

Reference no: EM132157864

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