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Your bank is offering you an account that will pay 21% interest in total for a two-year deposit. Determine the equivalent discount rate for a period...

Your bank is offering you an account that will pay 21% interest in total for a two-year deposit. Determine the equivalent discount rate for a period lengthof:

a. Six months.

b. One year.

c. One month


I need this one ASAP  time now is 11:55 EST 1/24/17

Top Answer

a. (1+r)^4 -1 = 21% r = 4.88% b.... View the full answer

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Other Answers

a, 21/24x6=5.25% b,... View the full answer

6 months=4.88% 1... View the full answer

a) The discount rate for a period of 6 months is 4.88% b)... View the full answer

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