Compute effective annual rate of interest

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Reference no: EM131955001

1. An amount of $1400 was invested for 71 months, maturing to $2177.36. What annually compounded rate was earned?

2. Explain how Treasury notes and bonds are quoted and how to translate those quotes into the market price.

3. Compute the effective annual rate of interest

a) for 6% compounded monthly

b) at which $1100 will grow to $2000 in seven years if compounded monthly.

Reference no: EM131955001

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