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Unformatted text preview: interest rate that Sarah has earned over the five year period. 9. Liangchen deposits 1000 into a bank account on January 1, 2011. Liangchen also deposits 300 on October 1, 2011. On December 31, 2011, Liangchen has 1400. Determine the annual effective interest rate earned by Liangchen during 2011. 10. Book Problem 2.3, Number 5. 11. Book Problem 2.3, Number 6. Hint: Find Anne’s effective annual interest using the cash flow and IRR functionality of your calculator. Put in 0 (zero) for the cash flows at time 1 and 3. Use this interest rate to determine when Frank should make his payment. Answers: 5. 2236.92 6. 6.3326% 7.17 months 8. 4.4847% 9. 9.3239% 10. T = 2.8248 years and T = 2.8649 years 11. 4.5143 years...
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 Spring '08
 Staff
 Math, Annual Percentage Rate, Debt, Effective Interest Rate, Internal rate of return

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