What effective interest rate for each ?three-month period is

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You work for? Sam, a financial planner. Sam has tasked you with evaluation the value of a proposal he has received. The proposal is an annuity that pays $110 every 3 months for 7 years. If the appropriate discount rate is an APR of 8.5% compounded? monthly, what is the value of this proposal.

Problem 1: The present value is ?

Problem 2: The effective interest rate for each 3?-month period is?

Reference no: EM132917752

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