Find the effective annual interest rate

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A man makes a $1,000 investment every year on December 31. Interest is 10% per year and is compounded semi-annually (every 6 months). He makes a total of ten investments. (a) Find the effective annual interest rate (b) Use your result in (a) to find the value of the investment immediately after the 10th investment (use the algebraic form of any interest factors used).

Reference no: EM13150695

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