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An account pays 7% annual interest compounded monthly. What is the effective interest rate on this account?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 45P

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An account pays 7% annual interest compounded monthly. What is the effective interest rate on this account?

note: show your answer in percent and to two decimal points. For example, input 12.126% as 12.13

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