Find those two effective interests

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Reference no: EM13868532

You have just put your house up for sale. The agent tells you that two offers have been made: (1) 400,000 now and 400,000 in 2 years; and, (2) 287,500 now, 237,500 in 1 year and 275,000 in 2 years. Your agent says that one offer seems “just as good” as the other. There are actually two yearly effective interest rates that would in fact make this true. Find those two effective interests.

Reference no: EM13868532

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