Effective annual rate being paid on the loan

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Reference no: EM131809157

Power Designs' professional liability insurance can be paid annually or semiannually. If paid annually, it costs $12,000. If paid semiannually, $750 is added to each payment. If the installment plan is chosen, what is the effective annual rate being paid on the "loan"? (Answer: 65.3%)

Reference no: EM131809157

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