What is the effective annual rate of interest

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What is the most that you would pay for an investment that promises to pay $14,331 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 17.00%.

A loan has a stated annual rate of 20.00%. If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest?

Reference no: EM133121915

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