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Unformatted text preview: (annual percentage yield)? 1. n = 40 r = ? PV = ($50  $1) = $49 PMT = 9% / 2 x $50 = $2.25 FV = $50 r = 4.61% APY = (1 + 0.0461) 21 = 9.4334% 2. n = 20 r = ? PV = ($50  $0.5) = $49.5 PMT = 9.25% x $50 = $4.625 FV = $50 r = 9.36% APY = 9.36% Choice 2 has the lower APY....
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 Spring '11
 Emil

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