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Calculate the effective interest rate for the investment

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Reference no: EM132549804

Sophie wanted to ensure that she had $70,000 for her child's university education. As soon as her child was born, she started saving $1,300 every 6 months in an investment fund. If she achieved her investment target on her child's 19th birthday, and she made no deposit on the child's 19th birthday, calculate the following:

Question a. The nominal interest rate for the investment, compounded quarterly.

Question b. Calculate the effective interest rate for this investment.

Reference no: EM132549804

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