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Determine what is the annual effective interest rate

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Reference no: EM132821013

Problem 1: If a Ocampo Corporation issues P50 million of commercial paper with a maturity of 6 months at an annual interest rate of 7.5%, ignoring other charges other than the interest being deducted, what is the annual effective interest rate?

a. 3.90%

b. 7.79 %

c. 7.50 %

d. 3.75 %

Reference no: EM132821013

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